Filed Chapter 7, forgot about a crpyto sale

[GoatJ]

Hi I filed Chapter 7 yesterday, and everything is correct, but i remembered that 5 months ago in 2020 I cashed out $200 in bitcoin. I purchased the bitcoin in 2018 or 2019 and honestly forgot about it. When I saw it was worth $200 I cashed it out because I needed the money and spent it right away. My lawyer never asked me about bitcoin so i never thought about it until today and didnt include that in the bankruptcy. I did some more digging and i was emailed a 1099-b in February showing the $200 transaction and this gets sent to the irs as well for tax purposes. Which worries me as it pertains to my bankruptcy.


I have not filed taxes for that year, because I am low income and dont have to. I am unemployed, receive food stamps, and that is the ONLY thing i have received that could be considered taxable income over the last two years.


My 341 meeting is a month away, I know the trustee gets access to your tax returns and checks your income/property. Is this something I should be worried about? Will they possibly deny my discharge over this $200 bitcoin transaction?

Thanks

[justbroke]

You cashed out and closed the bitcoin account? If so, then it just goes on your Statement of Financial Affairs (SOFA), I believe, just to show that there was a financial account. There's nothing special and it wouldn't get you in trouble since you (likely) spent the money, and it is not a significant amount of money. Your attorney, or the Trustee, may want you to update your SOFA.

I don't think this is an serious issue at all. Your attorney likely just need to update the SOFA to show the old closed account.

Statement of Financial affairs

20. Within 1 year before you filed for bankruptcy, were any financial accounts or instruments held in your name, or for your benefit, closed, sold, moved, or transferred?

[GoatJ]

You cashed out and closed the bitcoin account? If so, then it just goes on your Statement of Financial Affairs (SOFA), I believe, just to show that there was a financial account. There's nothing special and it wouldn't get you in trouble since you (likely) spent the money, and it is not a significant amount of money. Your attorney, or the Trustee, may want you to update your SOFA.

I don't think this is an serious issue at all. Your attorney likely just need to update the SOFA to show the old closed account.

Ok thanks, should I just wait for the 341 meeting and see if it comes up? I filed yesterday, and know it cost money to ammend a bankruptcy.

[justbroke]

Since you filed with an attorney, ask the attorney. It may only be the smaller fee to amend (it used to be something like $36 to amend) as the attorney may not charge you a fee on top of that. If you tell the Trustee in the 341 Meeting, they will almost certainly want the petition (the SOFA) amended.