Inheritance Question

[NeverDone]

So our short story is...

Converted from 13 to a 7 back in June. No assest case was closed in Dec 2011.

Our question...

Mother in-law passed in Nov 2011 (No inheritance known).

A few weeks ago we find out there was a small ira ($5k) for my wife. It will show up on our 2012 tax filing.

We are clearly outside the 180 days prior to the chapter 7 file date...

The 13 closed when converted to the 7.

What are legal obligations to report?

[lichteda]

Interesting, im supprised no one has picked this question up??

[tobee43]

if it's outside the waiting period you are fine with the 5k.

have a good time with it...maybe a new savings account!

[Miknan]

Is inheritance or other large sum from lottery or insurance ok 60 days after discharge or closing? I've been discharged since Nov but my case still open because of either my house or land that I own. I haven't come into any money, I'm just curious. I think my case is going to be open a long time.

[tobee43]

180 days.

usually at your 341 the trustee will ask you if you are expecting any such types of money in the near future. if you say "yes", and you are a chapter 7, most likely your case turns into an asset case and those proceeds are or will be distributed amongst your creditors (other than any amount falling under you exempted amount).

Miknan, why do you believe you case will be open for a long time?

[Miknan]

Oh yeah, 180 days not 60 but is that after file date, discharge date, or closing date?

Tobee, my case is still open. The last I talked to my lawyer, which was months ago, he said the trustee was going to set aside my mortgage (she had hired an attorney) and the bank would fight this and it would take at least a year, probably more. He later mentioned my vacant land I inherited years ago but the trustee already said she wasn't interested in this as an asset. I know she could change her mind but my interest in this pretty much worthless land is only 25% and I also have $3500 exemption on it just in casse. I'm guessing it's my house and it's going to take awhile. I hate waiting and not knowing but I finally paid my lawyer off and am done with him. I'll just wait and see...

[tobee43]

If your benefactor died within 180 days of the filing, the short answer is yes; you must turn the money over. however, on day 181, it's all yours.

i see, you are a chapter 7 asset case. it's hard i know, but there will be an end to it all. i really don't understand set aside your mortgage? do you mean the trustee wants to sell your home because of the equity?

i know it's hard, but it will pass, i just hope for your sake sooner than later.

[Miknan]

Sorry OP, didn't mean to hijack your thread.

Tobee, I don't understand it either. I'm slightly upside down in my mortgage. I surrendered the house in BK but was hoping to save it somehow after discharge. But then the trustee got that lawyer and my lawyer told me what he thought the trustee was up to. He simply said she found something in the mortgage which invalidated it. I have no idea what that may be. I refinanced once and the mortgage changed companies several times. Something must have got screwed up along the way. Either way, he said my idea to try and keep my house was now "off the table".

[tobee43]

Sorry OP, didn't mean to hijack your thread.

Tobee, I don't understand it either. I'm slightly upside down in my mortgage. I surrendered the house in BK but was hoping to save it somehow after discharge. But then the trustee got that lawyer and my lawyer told me what he thought the trustee was up to. He simply said she found something in the mortgage which invalidated it. I have no idea what that may be. I refinanced once and the mortgage changed companies several times. Something must have got screwed up along the way. Either way, he said my idea to try and keep my house was now "off the table".

Miknan, have you started a thread about this subject matter? (also sorry Op didn't mean to hijack either) only because maybe some of the local wizards like jb, hhm or lady, ...cat may have some thoughts or ideas about this.

off the table?? why because the bank may have done something illegal with respect to your mortgage docs rendering them invalid? i mean, what can this mean??? and why would the trustee have an interest UNLESS they found something like you hear about once and awhile, where the bank messed up so much you now own your house free and clear and so the trustee is going after it???

of course i'm just guessing, but i think you should put it out there if you already haven't just to get some thoughts about it. i hope it works out for you!