Does anyone know?

[Liaah]

If you would receive an inheritance while either under the 180 days period in Chap 7 or during you Chap 13 and it is more than you owe in debts. Will you get to keep what you do not owe?

It seems like to me, that they could only take what was due and not a profit.

Do you know?

[SinkingFast]

There may be some additional fees. The Trustee's cut, the remainder of your attny's fee if a Ch 13, and such. But basically, you'd pay back what you wanted to discharge. The rest would be yours to keep.

[AMISLANDER]

You do not want to inherit during bankruptcy...that is my thought!

[lrprn]

liaah, if you have a situation in your family where you know it's a real possibility of inheriting during your bankruptcy or 180 days after filing and you don't want your creditors to get the money, you can ask your relative to set up the inheritance in a trust that is created in such a way that it keeps the inheritance from your creditors. I believe it's called a discretionary trust - hopefully one of our other moderators or members will know more about this than I do. Also you can ask your relative to change their will with the stipulation you are to receive your share some time after the bankruptcy is done or leave your money to your spouse who didn't file, for example.

A bk lawyer posted his take on whether it's ok to notify your relative to change their will and then not tell the trustee at http://www.nooz.com/story/KGmcsJC3C4WzOV1p

[Liaah]

Thanks!

Thanks for all of the helpful information. Unfortunately inheritance before the 6 months is up could be a possibility for me.

I guess I look at it this way. If I had the money now, I would pay my creditors, so if I inherit the money during Bk I will pay my creditors. Bk is a good solution for me and husband at this point in our lives and we are being released from a huge amount of debt, maybe to never have to pay it. So if life works out that way for me I will just except it and be happy that the burden of all these bills have been removed. The downside to it all is I would have ruined our credit for nothing.

Thanks!

[Spartan]

"...Also you can ask your relative to change their will with the stipulation you are to receive your share some time after the bankruptcy is done .."

This wouldn't work. The statute stipulates that the determinating factor is when you become entitled to the inheritance. And the time frame of within 180 days of filing. It doesn't matter when you actually receive it.

The best thing that can happen is, no inheritance within the 180 days.

[Spartan]

Thanks for all of the helpful information. Unfortunately inheritance before the 6 months is up could be a possibility for me.

I guess I look at it this way. If I had the money now, I would pay my creditors, so if I inherit the money during Bk I will pay my creditors. Bk is a good solution for me and husband at this point in our lives and we are being released from a huge amount of debt, maybe to never have to pay it. So if life works out that way for me I will just except it and be happy that the burden of all these bills have been removed. The downside to it all is I would have ruined our credit for nothing.

Thanks!

Change the will, so the inheritance goes to a trust fund set up for your kids instead. You can structure the trust such that it only pays for education, and living expenses, etc. Then you don't worry about your kids pissing it all away upon turning 18.

[Liaah]

We don't have any kids... Only pets. How would they see a trust fund set up for pets

[Spartan]

adopt me then....

Well, you can have your relative set up a trust fund for YOU but with anti alienation clause. That is usually sufficient to ward off creditors. However, I am not sure if Federal Bk statutes would trump such anti-alienation clause or not. What you need to do, is to consult an asset protection specialist. It the amount is material, I would certainly plan ahead.

Have you filed already? 341 already? The question of whether you expect to be entitled to any inheritance comes up on both ocassion. Don't lie. Plan ahead instead. You don't want to get nailed for perjury.

[Liaah]

We haven't filed yet.

The question of whether you expect to be entitled to any inheritance comes up on both ocassion. Don't lie. Plan ahead instead. You don't want to get nailed for perjury.

This question kind of bothers me. How do I know when I will get an inheritance. I will one day get one but I don't know when. My dad is getting older and does have some health problems but in all honesty he is not on his death bed. So how do I answer that question?

[CATCHMEIFYOUCAN]

We haven't filed yet.

The question of whether you expect to be entitled to any inheritance comes up on both ocassion. Don't lie. Plan ahead instead. You don't want to get nailed for perjury.

This question kind of bothers me. How do I know when I will get an inheritance. I will one day get one but I don't know when. My dad is getting older and does have some health problems but in all honesty he is not on his death bed. So how do I answer that question?

Well there is your answer! You answer THE TRUTH: Not that you know of! You don't need to go into a long spiel about might be, maybe etc. My dad is 87 years old, when the trustee asked about an inheritance, just as the question was a quick question, so was my answer. SHORT-SIMPLE, "No!" onto the next question.

Best Wishes, CMIYC

[Spartan]

"...Well there is your answer! You answer THE TRUTH: Not that you know of!.."

Yep. For all we know, he may very well live to 95-100.


Since you haven't file, then it is perfectly good to have your dad consult with a qualified estate planner. Heck, if you had filed, your dad is still entitled to consult with a qualified estate planner.