Inheritance - When are you clear?

[BROKEDED]

My wife stands to inherit $70 million dollars when her grandmother....hahahahahahahaha

Sorry, just wondered how it felt to say that. Ok, actually, IF she hasn't been disowned by the time her grandmother passes away, she might inherit a few acres of land. We don't actually EXPECT anything since we haven't talked to most of the family in about 2 years after a fight about said land.

I've seen mention of 6 months before your inheritance is clear but is that from your filing date, your 341 date, your discharge date, or some other date?

Thanks!

[free2breathe]

180 days from filing date, the way I understand it.

[espo1357]

180 days from filing date, the way I understand it.

Is that only for a 7?

In a 13, I don't think that applies, does it?

Same question, two different ways. I am on tilt tonight.

[free2breathe]

Is that only for a 7?

In a 13, I don't think that applies, does it?

Same question, two different ways. I am on tilt tonight.

13 is most likely very different. Since this was in the "Before the Discharge - Chapter 7" I assumed OP was filing 7

[BROKEDED]

Yep, 7. I accidently posted this question in the CH 13 forum also so it might be answered over there as well. Thanks free2breathe.

[free2breathe]

I found this for those who might be interested in the difference between inheritance with chapter 7 or 13:


The key date is when your loved one passed away. In a Chapter 7 case, if the inheritance came in the first 180 days after your case was filed, it will go to the trustee, absent any exemptions that might protect all or part of it. In a Chapter 13, the value of the inheritance will be used to determine, in part, how much you must pay into a Chapter 13 plan in order to be fair to your creditors.

If the inheritance is received after that initial 180 day period, the effect is different. In a Chapter 7, the trustee would have no claim to it, and you would be able to keep it without sharing it with your creditors (unless you choose to do so). If you are in a Chapter 13 case, however, the answer is different. It may still be property of your bankruptcy estate in a Chapter 13. In addition, your Chapter 13 trustee may also contend that good faith requires devoting any excess funds or property to the plan.

[espo1357]

I found this for those who might be interested in the difference between inheritance with chapter 7 or 13:


The key date is when your loved one passed away. In a Chapter 7 case, if the inheritance came in the first 180 days after your case was filed, it will go to the trustee, absent any exemptions that might protect all or part of it. In a Chapter 13, the value of the inheritance will be used to determine, in part, how much you must pay into a Chapter 13 plan in order to be fair to your creditors.

If the inheritance is received after that initial 180 day period, the effect is different. In a Chapter 7, the trustee would have no claim to it, and you would be able to keep it without sharing it with your creditors (unless you choose to do so). If you are in a Chapter 13 case, however, the answer is different. It may still be property of your bankruptcy estate in a Chapter 13. In addition, your Chapter 13 trustee may also contend that good faith requires devoting any excess funds or property to the plan.

In a scenario where you would get a hugh inheritance, one that would cover all your creditors, I would think the best "play" would be to just let the 13 get dismissed, and then just file some other time?

Also, there are ways to get around the inheritance. There are good lawyers out there that know how to take care of stuff like that for a fee

Another point, if you are in a 13, and have a 5 year plan, often you can pay off the plan after 3 years (in my district, I can), so it is smart to just pay it off asap if you are expecting any type of inheritance in the future.

[AngelinaCat]

Yep, 7. I accidently posted this question in the CH 13 forum also so it might be answered over there as well. Thanks free2breathe.

I removed the duplicate post. It is against forum rules to post duplicate threads as it is too confusing for people trying to follow and answer both of them.

[BROKEDED]

I removed the duplicate post. It is against forum rules to post duplicate threads as it is too confusing for people trying to follow and answer both of them.

Thank you.

[BROKEDED]

free2breathe - Thanks so much. That's good to know. Maybe others will see this if they search for the same info.