Post Discharge Question

[DaisysMom]

If what I've read is correct, there is a 150 day (?) period, post discharge, that if you win the lotto or come into a large inheritance, that you have to report it to the trustee. How does that work? Do they watch you for that time period or is it the honor system where you are required to report if that should happen? And does it start the day you file or the date you are discharged? I am just curious, I have a situation where a close relative may pass away and I might be included in the will. After everything goes through probate it may be well beyond any BK deadlines, but I am not sure. And then also, if the treament is successful my relative may still be with us for several years. That would be the best result!!!.....but I am just curious if the worst happens.

DM

[LadyInTheRed]

It's 180 days from the date of filing and doesn't include winning the lottery, but would include an inheritance. If your relative dies within that 180 days, the inheritance becomes an asset of the BK estate regardless of when you actually receive it. The point of it is to keep somebody from filing BK when they know they are about to receive a inheritance that could have been used to pay creditors.

I'm not sure whether they keep an eye on you, but you should disclose the inheritance if you become entitled to it within 180 days of filing. It's better to not risk being accused of BK fraud.

I hope the treatment is successful and your relative has many years left on this planet!


From 11 USC Sec. 541

(5) Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date—
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit plan.