Question about inheritance during 13

[tammygirl1]

Hello all, I am new to forum but have not seen any information on what happens if I get an inheritance. I am the beneficiary to my father's estate. I was told I would have to pay my creditors in full if I get enough to cover it but will I also have to pay interest that was not accruing during the 13? I don't mind paying as it is my debt but hope not to be responible for interest on top of it all. Also, do they usually force you sell a house if it is part of the inheritance? The house would be fully paid off. Goodness, I don't expect or think anything would happend during this time but want to be prepared on aspects of what I am getting into.
Thanks for advice in advance!

[Flamingo]

Did you do a search on this forum? This subject has been discussed heavily in here over the years. If you receive an inheritance during your Chapter 13, you need to report it to your attorney as it is income/property received during your plan and increases your assets and disposable income. Your Chapter 13 was filed as to your financial picture on the date of filing and your finances are controlled by the Trustee during your Plan years. Not to report an inheritance can result in a dismissal.

You may or may not get to keep all or part of an inheritance depending on your specific circumstances. Our trustee took half of an inheritance my husband received from his father from insurance proceeds after all estate bills were paid and those funds were distributed over and above what the plan called for to creditors (did not decrease the plan amount allocated to those creditors...given over and above).

If you are in someone's will right now who is in bad health and could possibly pass on during your Plan, I suggest you discuss the situatoin with an attorney before filing or that they are aware of the situation if you do file. In fact, one of the questions you will be asked by your attorney is whether or not you expect to receive an inheritance during the course of your plan.

[Licoriceky2]

Flamingo, quick question. We are about to enter a 13 and my father has stage four colon cancer of which he will probably pass prior to us exciting the 13. I understand about the inheritanace, but are insurance proceeds, life insurance specifically, subject to capture by the trustee? Specifically, if our debt is $120k, our plan amount is $40k over five years, and I receive $100k than I would be paying my creditors in full correct? What about interest during these years? My attorney told me that they had to stop charging interest upon us filing a petition.

I thank you for your assistance.

[debtinohio]

Get the will changed to put it into a trust for your baby instead of to you.