In Chapter 13, and expecting inheritance

[espo1357]

Did a search on this, and couldn't find the specifics I am looking for.

Anyway, I am in a 13 currently, and my payments are going to the secured creditors. I owed about 100k plus, and had a second mortgage (which is going to be stripped in the 13).

Suddenly, I expect to get an inheritance that should be well over 100k and more. So, I am very concerned that the wolves are going to get the inheritance UNLESS I convert to a chapter 7 and forefit (hopefully the discharge will happen in time).

I know I will call my lawyer asap, but my main question is what percentage of the inheritance can they get?

What have others done in this situation.

Besides, the chapter 7 conversion is beginning to make more sense, now that my home is still 20 percent plus underwater.

What a mess this housing market did!

[Flamingo]

Inform your attorney when you expect to receive this inheritance. I am assuming this is a sure thing and not an assumption that you found out you are in someone's will that is in good health. If the person has already passed away and you found out you are an heir, your attorney will need to know the specifics and will contact the trustee. Yes they will use all or part of your inheritance as necessary but only what percentage and other details will be determined by your attorney and trustee. My father-in-law passed away during our Chapter 13 and my husband and his brother inherited from proceeds from the sale of his house and life insurance. After all estate bills were paid and house sold we had report all figures to our attorney and the trustee kept 1/2 of his inheritance. It was not much after all bills, etc. were paid but it was distributed over and above the confirmed amounts to our creditors.

The main thing is to report it and since you have knowledge of the inheritance at this point, that will also affect anything as to you possibility converting to a Chapter 7. Talk to your attorney.

[becky20]

Did a search on this, and couldn't find the specifics I am looking for.

Anyway, I am in a 13 currently, and my payments are going to the secured creditors. I owed about 100k plus, and had a second mortgage (which is going to be stripped in the 13).

Suddenly, I expect to get an inheritance that should be well over 100k and more. So, I am very concerned that the wolves are going to get the inheritance UNLESS I convert to a chapter 7 and forefit (hopefully the discharge will happen in time).
I know I will call my lawyer asap, but my main question is what percentage of the inheritance can they get?

What have others done in this situation.

Besides, the chapter 7 conversion is beginning to make more sense, now that my home is still 20 percent plus underwater.

What a mess this housing market did!

I believe a trustee would ask about inheritance if you were to convert (seemed a standard question in the 341) so at this point even if you convert the trustee is going to know that you're getting an inheritance...

[newbie2]

Did a search on this, and couldn't find the specifics I am looking for.

Anyway, I am in a 13 currently, and my payments are going to the secured creditors. I owed about 100k plus, and had a second mortgage (which is going to be stripped in the 13).

Suddenly, I expect to get an inheritance that should be well over 100k and more. So, I am very concerned that the wolves are going to get the inheritance UNLESS I convert to a chapter 7 and forefit (hopefully the discharge will happen in time).

I know I will call my lawyer asap, but my main question is what percentage of the inheritance can they get?

What have others done in this situation.

Besides, the chapter 7 conversion is beginning to make more sense, now that my home is still 20 percent plus underwater.

What a mess this housing market did!

By "wolves" I think you mean your creditors? Yes, they will receive part of the inheritance, and no, I don't believe converting to a Chapter 7 will stop it. In fact if you had filed a Chapter 7 originally and an inheritance originated within 180 days of filing the trustee could (and probably would) distribute it to your unsecured creditors. Your finances are part of the bankruptcy that you voluntarily entered, and as such the trustee has control of them.

Call your attorney and ask about how to proceed. They are used to this type of thing.

[espo1357]

By "wolves" I think you mean your creditors? Yes, they will receive part of the inheritance, and no, I don't believe converting to a Chapter 7 will stop it. In fact if you had filed a Chapter 7 originally and an inheritance originated within 180 days of filing the trustee could (and probably would) distribute it to your unsecured creditors. Your finances are part of the bankruptcy that you voluntarily entered, and as such the trustee has control of them.

Call your attorney and ask about how to proceed. They are used to this type of thing.

my luck, my attorney is on vacation til next week.

anyway, I think it may be a good idea to just get the 13 dismissed (don't pay into anymore), and then when I get the inheritance, it doesn't matter.

Am I missing something here, other than losing court protection?

My thought is that I could always file a 7 afterwards if the garnishments, etc start up again.

Thank you bankers, for allowing people with no income and no credit to ruin people like me with credit and good income, in this housing market. Thanks a lot.