Probate and Chapter 7

[bmurphy]

Hi,

I'm the executor of my father's estate. He passed in August. His house is in Probate.

Well, I owe a creditor $22,000 that I can't pay.

I want to file Chapter 7 before the probate is over so the asset is exempt from seizure. I've read where if you receive an inheritance after 180 days from the filing, you are okay.

Unfortunately, the probate lawyer doesn't know and no one I talk to has been able to say for certain whether this is true with probate.

Some people say that the probate is a right to receive some portion of the estate and is therefore an asset I have to list; however, no one really knows what that asset is worth.

Does anybody have experience with this?

Thanks,

Bob

[cupcake]

Hi,

I'm the executor of my father's estate. He passed in August. His house is in Probate.

Well, I owe a creditor $22,000 that I can't pay.

I want to file Chapter 7 before the probate is over so the asset is exempt from seizure. I've read where if you receive an inheritance after 180 days from the filing, you are okay.

Unfortunately, the probate lawyer doesn't know and no one I talk to has been able to say for certain whether this is true with probate.

Some people say that the probate is a right to receive some portion of the estate and is therefore an asset I have to list; however, no one really knows what that asset is worth.

Does anybody have experience with this?

Thanks,

Bob

Bob, regardless of when you file and when the estate has been fully administered, you will still have to disclose your inheritance. You know that you will be receiving (or will have received) the money and you will be committing fraud by not disclosing it in your filing.

Will you be receiving enough to pay the $22k to your creditor? Do you have any other debts that you are looking to discharge?

[keepmine]

It's not after 180 days from filing.
It's within 180 days of filing. A big difference. In other words, you file an stand to inherit money or property within 180 days of your filing date it could become property of the bk estate.

http://doney.net/bkcode/11usc0541.htm

[justbroke]

Just to clarify what keepmine posted, I want to be a little more precise.

Property of the Estate, with respect to inheritances, includes;

1. all property that is in your possession at the time of filing
2. all property you're entitled to receive by bequest or demise, and that you became entitled to prior to filing
3. all property that you become entitled to, within 180 days after filing

The last one (c.) is the most ambiguous. It basically means as soon as you become entitled to, but not actually receive. So, if you filed on 1/01/2010 and your parent died on 6/30/2010, even though you probably may not get anything from probate for another year (6/30/2011)... it is still property of the Bankruptcy Estate. Remember, it's not the date your receive the property.

It's the date you become entitled to receive the property.

So, that means, since the poster's family member has already passed, any inheritance is property of the Estate, even though the poster hasn't yet received or gained title to the property.

[AngelinaCatHub]

Yes Bob, and to add, at your 341 the Trustee will ask you the question that do you expect to or have you gotten, etc...... and you are under oath of perjury if you do not state this accurately. You may as well settle probate, settle the bills you have and if you have to then go C7, you can do this with clear conscience and legal simplicity. 'Hub