Have Liabilities, Received Check, Protection?

[lechape6]

My friend wrote me a check for 43,000 as a thank you gift for helping her grandmother before she passed.

She doesn't know I have medical debts of 40,000 and owe taxes of 20,000 after getting into a car accident from two years ago.

I work a low paying job since the accident. I used to paint houses, now I'm a cashier. If I deposit this check, if it gets levied, I could be left with nothing. Then, if I lose my job, I could wind up homeless.

I want to convert the entire amount to crypto, but to do this, I need to deposit it in my checking account. I've had my checking account frozen before due to the taxes, I think they'll see it.

I was thinking of starting a business and then storing the money as crypto in a cold wallet. But as soon as the check hits a bank account, I am concerned they'll try to get it. Same with a trust. They'd say fraudulent transfer/conveyance. I'm concerned a bankruptcy could make it harder to get a new job or smaller apartment if I need to downsize if I am laid off and I already have the check. I want to pay off my debts eventually.

Not sure what to do.

 

[JohnnyDoe]

Can you ask your friend to send a wire transfer instead? Or crypto directly

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[lechape6]

JohnnyDoe said:
Can you ask your friend to send a wire transfer instead? Or crypto directly
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My friend is very anti-cypto. She might just decide to void the check and donate the money to charity if i asked her to send me crypto.

I'm not sure if a wire transfer would do anything differently, as soon as the amount goes to my bank I think they can get it. Do you mean ask her to wire it to an exchange? Would she know it's an exchange if I did that? How would I explain it to her without mentioning crypto?

Would an offshore account be better?

Last edited: Nov 14, 2022

 

[bigdaddyleon]

I think the easiest thing would be to pay the debt & bite the bullet.

 

[lechape6]

bigdaddyleon said:
I think the easiest thing would be to pay the debt & bite the bullet.
Click to expand...

It wouldn't surprise me if I get laid off. Business is slow. When I was 18, I got into a fight and got probation, it's hard to find a job. I have no saving as a result of the accident, in another year or two I'll be in a better position to pay. I really don't want to be homeless.

 

[bigdaddyleon]

lechape6 said:
It wouldn't surprise me if I get laid off. Business is slow. When I was 18, I got into a fight and got probation, it's hard to find a job. I have no saving as a result of the accident, in another year or two I'll be in a better position to pay. I really don't want to be homeless.
Click to expand...

Maybe you can ask your friend not to send the money directly to you, but to another friend (with a contract before) and he will exchange it for Crypto.

If the friend wants to know the background, you can be honest.

An offshore construct would be possible, but I think it is probably not feasible for you.

 

[lechape6]

bigdaddyleon said:
Maybe you can ask your friend not to send the money directly to you, but to another friend (with a contract before) and he will exchange it for Crypto.

If the friend wants to know the background, you can be honest.

An offshore construct would be possible, but I think it is probably not feasible for you.
Click to expand...

My world got a lot smaller after the accident. The only friends I know who follow crypto are online friends, not sure it would be good to ask them.

Why would the offshore construct not be feasible?

 

[bigdaddyleon]

lechape6 said:
Why would the offshore construct not be feasible?
Click to expand...

You don't live in a third world country where the authorities still work on Windows 95 & use Internet Explorer.

As a US citizen, you are already out of many banks outside the US due to extra reporting regulations.

 

[JohnnyDoe]

lechape6 said:
My friend is very anti-cypto. She might just decide to void the check and donate the money to charity if i asked her to send me crypto.

I'm not sure if a wire transfer would do anything differently, as soon as the amount goes to my bank I think they can get it. Do you mean ask her to wire it to an exchange? Would she know it's an exchange if I did that? How would I explain it to her without mentioning crypto?

Would an offshore account be better?
Click to expand...

Your friend could send the money to your personal account abroad, where it will not be confiscated. So, first you should open one.
Tell her some fugazi about why you can't cash the cheque and receive money domestically.
Once you have the money abroad you will have plenty of options.

bigdaddyleon said:
You don't live in a third world country where the authorities still work on Windows 95 & use Internet Explorer.

As a US citizen, you are already out of many banks outside the US due to extra reporting regulations.
Click to expand...

If you are a U.S. citizen then you would need to take some extra steps like darks.

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[lechape6]

JohnnyDoe said:
Your friend could send the money to your personal account abroad, where it will not be confiscated. So, first you should open one.
Tell her some fugazi about why you can't cash the cheque and receive money domestically.
Once you have the money abroad you will have plenty of options.


If you are a U.S. citizen then you would need to take some extra steps like darks.
Click to expand...

I am a US citizen. With darks, they might end up holding the money and then I lose all access to it. It would be riskier than it's worth with the check made out in my name. She would also not wire money abroad. She's very conservative and hesitant, it wouldn't work.

Is there a way to send the check to an overseas account for deposit and would that result in the amount immediately being disclosed? Should I have a domestic Corp that I create own the overseas bank account? I don't care if this is eventually disclosed, just don't want immediate disclosure and everything taken and me ending up homeless.

Last edited: Nov 15, 2022

 

[JohnnyDoe]

lechape6 said:
I am a US citizen. With darks, they might end up holding the money and then I lose all access to it. It would be riskier than it's worth with the check made out in my name. She would also not wire money abroad. She's very conservative and hesitant, it wouldn't work.

Is there a way to send the check to an overseas account for deposit and would that result in the amount immediately being disclosed? Should I have a domestic Corp that I create own the overseas bank account? I don't care if this is eventually disclosed, just don't want immediate disclosure and everything taken and me ending up homeless.
Click to expand...

You will not find any bank willing to cash the cheque outside the US.

Unfortunately you need to take some risks to do what you want to do. Otherwise accept the reality and cope with it.

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[bigdaddyleon]

lechape6 said:
I don't care if this is eventually disclosed,
Click to expand...

You will wake up with even more problems than you currently have.

look for a new job or start your own business, and then you also pay off your debts at the same time.

 

[lechape6]

So if I start my own business, can I do that with this check and not have it levied?

I applied for 10 jobs in October and no one responded.

 

[bigdaddyleon]

lechape6 said:
So if I start my own business, can I do that with this check and not have it levied?
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I think a tax advisor in the US would be appropriate for this, unfortunately I am not familiar with the US tax system.
This also shouldn't be an incentive to not pay your debt, but that you have extra income.

lechape6 said:
I applied for 10 jobs in October and no one responded.
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You know there's a good chance you'll lose your job, but only send out 10 applications?

I would rather focus on a new & better paying job instead of finding "loopholes" that will break your neck later.

 

[deepspeculator]

You want to have this debt hanging over your life until the end? IMO just do like this:
1. Try to realize this check - if money goes towards paying debt, than that's fine, it's first step towards debt-free life.
2. If you get the money then you achieved what you wanted (although IMO it would be still better to use it to pay off this debt).
If you get laid off then you will find another job. Such small debt is not worth living like some hiding drug lord until end of your life.

 

[lechape6]

bigdaddyleon said:
You will wake up with even more problems than you currently have.
Click to expand...

If I create an LLC in another country, open a bank account for the LLC in another country, and then endorse the check to the LLC, and do this all legally, wouldn't this pose a large barrier for immediate collections without being illegal, since I intend to pay back the debts eventually?

What are the pitfalls in creating an LLC in another country and opening up a bank account there?

 

[orangeye]

bigdaddyleon said:
I think the easiest thing would be to pay the debt & bite the bullet.
Click to expand...

That is exactly what you have to do in your situation, it won't work if your friend won't make a wire transfer.

The idea is to get the transfer to another bank account for instant to a trusted person from here and get the money back in crypto that way.

 

[bigdaddyleon]

lechape6 said:
since I intend to pay back the debts eventually?
Click to expand...

You make debts, so you have to pay them back.
These debts would not be there if you had health insurance and car insurance.

lechape6 said:
If I create an LLC in another country, open a bank account for the LLC in another country, and then endorse the check to the LLC, and do this all legally,
Click to expand...

You can legally run a company anywhere in the world, but you must disclose it to your tax office.
Bank accounts within the USA know the IRS, outside, should not blow up instant, but will

lechape6 said:
What are the pitfalls in creating an LLC in another country and opening up a bank account there?
Click to expand...

That you don't solve your problems, but end up making them worse, hoping that it won't be noticed....

 

[myhand]

lechape6 said:
If I create an LLC in another country, open a bank account for the LLC in another country, and then endorse the check to the LLC, and do this all legally, wouldn't this pose a large barrier for immediate collections without being illegal, since I intend to pay back the debts eventually?
Click to expand...

if the bank will accept the check you are all good and can get around with it.

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