Just Filed & Father Died

[AngelinaCatHub]

If -- and this is only IF - you go the settlement route, here's what I would do:

YOU decide what amount you are willing to pay. Offer it with the condition that no 1099(?) is sent to you or the IRS. In this day and age, it may work.

[lrprn]

Pigpen, you said in your original post that you filed Ch 7 and your father passed away "about that same time". Did your father pass away BEFORE or AFTER you filed?

If he passed away before you filed, then the inheritance will be considered a part of your estate and will be taken in full by your trustee to pay your creditors. However, the remainder of the debt will be wiped out and you'll start with a clean financial slate with no taxes due.

If he passed away after you filed, then the inheritance won't be a part of your estate, but it will still be taken because the inheritance came within six months of your filing date. Same situation though - the $30K will go to pay off creditors but the remainder will be wiped out with no taxes due.

However, allowing your case to be dismissed so that you can keep the money to pay creditors yourself but still be reponsible for paying the remainder of the debt yourself PLUS have to pay taxes on whatever is forgiven by your creditors PLUS have the filing on your record for 10 years may not be the right choice in this situation. Go back to your lawyer and carefully talk through what each option - staying in the Ch 7 or allowing it to be dismissed - works best for you financially in the long run.

You can only do this once - you can't go back and reopen the 7 if you mess up and allow it to be dismissed. Go get reliable information to make a sound decision for yourself.

[CindyLou]

You can't be paying creditors while in an open BK. the trustee will take all the money back and distribute as he sees fit. That 30,000 is property of the BK estate. You need to speak with the trustee ASAP!!!

[pigpen75]

I'm speaking with my lawyer on Wed and i'll keep you guys informed. My 341 meeting is on Dec 22.

[pigpen75]

****UPDATE****
I just got done talking to my lawyer. The conversation was a little interesting, to say the least.
He said to skip out on the 341 meeting. The trustee should reschedule another one for about a month or so later. The lawyer or one of his reps will go to the second one and say they haven't heard from me. He then told me the BK should be dismissed within 30 days or so. Once and if we get it dismissed, let both automobiles get repossesed, by a couple more dependable ones with cash, so (i'm no longer upside down). Take the rest of the $ and put it in to my morgage. We then will file again in a few months. He says the second time we will get a new trustee and everthing should be fine. I asked him what the worst that could happen, and he said I would lose the inheritance, So I guess I got nothing to lose? What do you guys think?

[jessegirl]

Isn't the new trustee going to ask you why never never showed for the 341 on your first chapter 7? If so, what are oyu going to say? I understand your situation and not wanting the trsutee to get part of this money that your father intended you to have. I hope everything goes the way the attorney says......

[pigpen75]

Isn't the new trustee going to ask you why never never showed for the 341 on your first chapter 7? If so, what are oyu going to say? I understand your situation and not wanting the trsutee to get part of this money that your father intended you to have. I hope everything goes the way the attorney says......

I'll talked to my lawyer about that, but I think anyone even a lawyer can understand "Grief".

[MomIcantFindmy]

I am sorry to hear about your dad.

You can have your case dismissed and then refile? If you refile you do not have protection of the stay. Hummm...if you buy two autos with cash then you would have to make sure the amount they are worth would fit into your exemption. I think this sounds like you might be playing with fire a bit and I would think very carefully.

One thought that keeps going through my head is if you owe 40K and the inheritance is 30K why wouldn't you give it up just to be done and out of debt once and for all. It would seem to me taking the money would be the last option. Just my thoughts.

[MomIcantFindmy]

I don't think you could come out with a better credit rating because you already took the BK hit and it doesn't go away for a long time. What would stop the creditors from dropping their claims just because you negotiated half? Creditor will just claim they never submitted paperwork to the court to drop claim if you ask.

decide what amount you are willing to pay. Offer it with the condition that no 1099(?) is sent to you or the IRS. In this day and age, it may work.

Do NOT do that. Do not even try to negotiate that the 1099 not be sent to you or the IRS. That is IRS fraud and you could end up in jail or with fines that make the 30K go away REAL fast.

Again, sorry about your Dad. Please think clearly here and good luck! Keep us posted!!

[jessegirl]

Pigpen - I do not think that the trustee is going to think that you had your case dismissed because of grief, when they find out that you got an inheritance. Believe me, I totally understand you wanting to keep the money that your father intended you to have. BUT, the trustee is not going to think of grief they are going to know that you got an inhertance and did not continue with the BK cause of the money. Comon, they see this kind of stuff. They are not stupid and they will know why you dropped the other BK. I think that you are probably causing a problem for yourself but its your business and you feel what you are doing is right. IMO - I would try to exempt whatever you can and go thru with the BK. You have already paid the attorney and then you are going to have to pay him again. What are you gaining by keeping the money? When in turn it is going to cost you again for attorney fees and POSSIBLY the CC companies are going to filing suit once the stay is lifted. Becareful....

[pigpen75]

Yea, maybe the whole grief thing probably won't be a good idea. I'll just listen and take the advice from my lawyer. He seems pretty confident, but I do think I'll have to wait 180 to refile after this gets dismissed?

[AngelinaCatHub]

Pigpen - I do not think that the trustee is going to think that you had your case dismissed because of grief, when they find out that you got an inheritance. Believe me, I totally understand you wanting to keep the money that your father intended you to have. BUT, the trustee is not going to think of grief they are going to know that you got an inhertance and did not continue with the BK cause of the money. Comon, they see this kind of stuff. They are not stupid and they will know why you dropped the other BK. I think that you are probably causing a problem for yourself but its your business and you feel what you are doing is right. IMO - I would try to exempt whatever you can and go thru with the BK. You have already paid the attorney and then you are going to have to pay him again. What are you gaining by keeping the money? When in turn it is going to cost you again for attorney fees and POSSIBLY the CC companies are going to filing suit once the stay is lifted. Becareful....

[pigpen75]

I would have no problems at all giving up all of my inheritance to all the crditors and handeling my "obligations." However, those bastards will refuse to take the BK off my credit for 10 years and that is BS!

[Genenco]

I would have no problems at all giving up all of my inheritance to all the crditors and handeling my "obligations." However, those bastards will refuse to take the BK off my credit for 10 years and that is BS!

I can agree, that once the damage is "Done" it can't be "Undone" and so, yes that note in your credit file, will stay there. But, let not the anger of the situation overcome good sense.

It really sounds like your lawyer is telling you to commit fraud..No, that's not what you'd ever want to do. From what I gather (and several have said so) your lawyer is playing VERY loose with the rules in regards to bk law.

I'd be VERY leery in dealing with him. In fact, I'd really head to another lawyer, spread it out for them and let them see what can, could and should be done "Legally".

You can always fire your lawyer, and yes, you'd have to eat the money, but you'd have a better idea of who to NOT reccommend should anyone ask you if you knew a good bk lawyer.

And my condolences to you for the loss of your Father.

[jessegirl]

Ya know, your lawyer would like the idea of you getting it dismissed and then refiling. Cause he has to do nothing and is already paid and then he will get paid again.