Possible Inheritance...

[scbendel]

Bk is past the 90 days and still hasn't discharged. Can I call the clerk and have them enter an order of discharge even though the AP is still opened?

The reason I'm asking is this: my wife just lost a relative who is most likely leaving her a small sum of money; and obviously I want to be discharged before (and if) that happens. As far as the AP, I may offer a settlement at the status conference of 33 cents on the dollar; since the debt is still "open", as it were, would the be entitled to anything we were to get? It may be 90+ days before we see anything.

Thanks again guys!

[AngelinaCat]

A Discharge will not help you if your wife receives an inheritance with 180 days of your 341. On day 181, you would be free and clear. Otherwise, that money or asset belongs to your BK Estate.

[keepmine]

Actually, it's within 180 days of your filing date-not the 341.

(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

[scbendel]

So is it date of the death? Or date the funds are received? It could be 6 months before we see anything (if there is anything).

[scbendel]

Is there anything that would be exempt from this?

[AngelinaCat]

Actually, it's within 180 days of your filing date-not the 341.

You are correct. I goofed on that one. I was remembering our trustee asking if we "expected to inherit anything within 180 days", at our 341. Sorry.

Here is an article by the good folks at NOLO Press with information about possible inheritances:

http://www.nolo.com/legal-encyclopedia/inheritances-chapter-7-bankruptcy.html

[AngelinaCat]

So is it date of the death? Or date the funds are received? It could be 6 months before we see anything (if there is anything).

According to the article that I posted the link to, it is usually the date the person has passed away.

[AngelinaCat]

Is there anything that would be exempt from this?

That is going to depend on what the inheritance actually ends up being, and whether it can be covered by your State's exemptions. You are not allowed to use Federal Exemptions in Arizona. Here is another NOLO Press article about Arizona exemptions:

http://www.nolo.com/legal-encyclopedia/arizona-bankruptcy-exemptions.html

[keepmine]

So is it date of the death? Or date the funds are received? It could be 6 months before we see anything (if there is anything).

If the relative died within 180 days of the filing date, your wife has an interest in the estate and any funds could well be the property of the estate.

[despritfreya]

Sorry, but this is an asset of the estate and belongs to the Trustee. Assuming we are dealing with a will, the right to the inheritance came into being upon the death of the testator. If that happened within 180 days after the filing date it belongs to the bk estate. It does not matter when the funds are received. And. . . there is no exemption that will cover an inheritance.

Des.

[scbendel]

Sigh. If it isn't one thing, it's another. Thanks folks!