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Inheritance after Chapter 7

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    Inheritance after Chapter 7

    I know that any inheritance that a debtor, who filed Chapter 7 might receive, becomes part of the bankruptcy estate, if the person leaving the money or property dies within 180 days of the filing. Is that correct?

    What happens if there's no will? How can a person who filed Chapter 7 ensure that any money or property that could be inherited does not go to the bankruptcy estate?

    I could end up in this situation. It's an extremely awkward topic to bring up with the people involved, because I don't know how much money (if any) there is to be inherited, and if there is a will. I doubt there is. The guy may live beyond the 180 days, but he is not well, so I thought I should consider the possibility.

    #2
    Correct, the triggering event is the "death" of the person. If someone dies within 180 days of "filing", anything that person leaves you is part of the BK.

    No easy way to do what you are suggesting. With no will, the estate will be subject to the probate laws of your state. If you are a "direct" relative, then you probably have a problem. You need to be careful, because any actions on you part to "disinherit" yourself could be construed as BK bad faith and jeopardize your BK. The best way to deal with it is to be proactive, suggest that the person actually do a will. That shouldn't be too hard, it is how the person can make sure things are done according to his wishes.

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      #3
      At this time, all is speculation. So don't even mention it. It is like "I could win the lottery, then what?" There is no answer for a situation that has not occurred. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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        #4
        I'm worried about him not having a will, and me being automatically entitled to a percentage of his assets, which I would be. Then, I know, the assets would go to the BK.

        I know it's just speculation, but the fact is, he is not well at all. He doesn't have much time left unfortunately.

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