Digital Assets and Bankruptcy: Things to Consider
Filing for consumer bankruptcy can be an extremely complicated process, especially when you are trying to determine which of your assets are likely to be exempt under Illinois law. As you may already know, Illinois bankruptcy exemptions allow debtors to keep property (i.e., exempt property will not be liquidated) in a Chapter 7 bankruptcy case, and exemptions determine which assets must be included in a debtor’s repayment plan in a Chapter 13 bankruptcy case. Most bankruptcy exemptions were written into the law quite some time ago, so they do not specifically account for new kinds of digital assets like cryptocurrency or non-fungible tokens (NFTs). If you own cryptocurrency, NFTs, or other types of digital assets, what do you need to consider if you are thinking about filing for bankruptcy? Understand What Types of Assets are Digital Before we discuss some of the questions you might have about bankruptcy exemptions and digital assets, it is important to understand what kinds of asset...