Bankruptcy and default judgment

[Oliver55]

I am wondering what to do. I have a default judgment of $18,000 with the credit union which is about four years old. I am on Social Security disability and therefore I haven't been able to be garnished. My mom is not doing very well and I am am in her will. I wondered if I should try to do a bankruptcy have a default judgment of the $18,000

How likely is it that they will be checking court records for see if I am receiving an inheritance? From where were they get the information? I know that they have probate court records and I have looked through them but I havent found anything helpful.

[despritfreya]

My mom is not doing very well and I am am in her will. . . How likely is it that they will be checking court records for see if I am receiving an inheritance? From where were they get the information?

If your mom passes within 180 days after the day you file a Chapter 7 the inheritance becomes property of the bk estate. Unless you can protect the property by claiming some exemption, your Trustee takes it. The bk court relies upon you for such information. You are required to disclose the right to the inheritance by amending Schedule B and notifying the Trustee.

Des.

[bcohen]

Remember that if you file for bankruptcy, and fail to disclose the inheritance, that's a serious matter. If you don't file, then when the time comes, and you inherit the money, there's really nothing to stop you from hiding the money under your mattress, spending it on things which the creditor cannot attach, etc. Also, with the judgment now being 4 years old, and the creditor having failed to collect anything for 4 years, they may not even be actively looking to collect anymore.

[Oliver55]

Thank you both for answering. I did some research and found out the 180 days. I certainly do not want the long arm of the law to grab me. I don't think the inheritance will be over $15,000. I think I may offer a settlement but that might tip my hand. And they'll go looking for more money.

Deb

[bcohen]

Why try to settle? You have no job, and your only income is SSDI, which means that you are currently collection-proof, and your judgment creditor knows this. When the time comes, simply hide the money, and use it to pay living expenses and/or buy things that are exempt from attachment. Don't file for bankruptcy until all the money has been spent.

[Oliver55]

Thanks Bcohen. That's exactly what I'll do.