Re : Gift after/during chapter 7 filing - Help...

[Enrique]

Hello All :

I have question....and hope someone here can answer this :

I am in the midst of chapter 7 filing and my father has some rental property that he wants to gift to me --- How long do I have to wait after the filing before he can give them to me legally where I am protected from the creditors/trustee?

Any insight would be appreciated!!!

[free2breathe]

I think it would be best to wait until after your case is actually closed. If he gives it to you after filing and the trustee finds out about it, it could seem as if you were trying to hide the asset to keep it from being taken to distribute to your creditors.

Dad should hang on to the rental property for a while yet. Congrats on him wanting to give you such a nice gift though. Nice dad!

[Cherinfo]

My lawyer told me six months after discharge.

[backtoschool]

You cannot receive any significant inheritance until after six months after discharge or it becomes part of the bankruptcy estate. Property from a family member would be considered an inheritance and would fall under this rule.

[debee]

11 USC § 541 indicates property rec'd by "bequest, devise, or inheritance" becomes property of the estate if rec'd within the 180 days, but the legal definitions of all three words is pretty explicit in that the giver of gifts is already dead. There's no mention of gifts from living people becoming property of the estate.

[tcreegan]

Hi all, Hi Enrique,

I'm a better safe than sorry type...I would want 6 months after discharge or 1 month after closing...whichever came later.

....any reason your Dad can't hang on for awhile longer?

Nice Dad, his gift will certainly help your post-BK 'fresh start' on life!

Tom in Colo

[debee]

I'm switching sides on this issue. I used to think gifts were fine post-filing - keep it, keep quiet about it - but after reading one of b2s's posts in another thread I changed my mind and now I think the cautious approach is the way to go. You don't want to end up having your case dismissed under 'totality of circumstances'.