Question 180 days - how does it start? how to calculate?

[Flatbroke1]

I was told if I came into any money (inheritance, lottery, etc) within 180 days I must report the funds to my attorney and/or trustee. While I haven't hit the "jackpot" I am curious as to when the 180 days is up. Does the 180 days start from the date I "FILLED" or is it 180 days from the "341 MEETING"? Do I count the day I filled/341 or do I count the day AFTER as the first day? I used one of the "day calculators on the web" and entered Feb 1 (filling date) and the 180th day is July 31. Or would the 180th day be Aug 1st?

[ryan]

As I understand it, it starts from the day you FILED.

[ssmdem]

I'm interested in this as well. My mom is all concerned about her life insurance policies as I am the sole beneficiary. She wants to change them to my dad until that time frame is up and then switch them back. Guess I can't blame her - the luck we've had these past few years.......

[HHM]

The 180 days starts from the day you file.

However, this is a phantom concern...have you really thought this through. If you actually did get the money, most people would end up using it to pay creditors anyway. Or, using it to settle debt if the amount is not enough to cover the full balance, so it is moot point.

[ssmdem]

The 180 days starts from the day you file.

However, this is a phantom concern...have you really thought this through. If you actually did get the money, most people would end up using it to pay creditors anyway. Or, using it to settle debt if the amount is not enough to cover the full balance, so it is moot point.

I agree (and certainly hope) that it's a LONG WAY off -- but assuming the worst, and I've already filed, why would I use it to pay off creditors? I'd still have a bankruptcy on my record and still be left with nothing.

[starr4law]

180 days from the date of filing. Also, you do not actually have to receive the money/property in the 180 days, just the right to received the money/property has to be created. For example: you file bky today. On Friday, Uncle Fred dies and creates the right for you to receive an inheiritance. You don't get the money for 5 years because it is stuck in probate. The right was created in the first 180 days post filing so it is eligible to be attached by the bky court.

Depending on what exemptions you used, would dictate what happens. Say you used Federal exemptions and you still had $8k of wildcard left - you would amend the schedules, protect the first $8k and the rest would go to your creditors pro-rata. Let's say you won the lottery - it would be moot because you would win WAY more than you owed (in most circumstances). You would still have the bky on your record, but as a millionaire, I think you could find ways to overcome that

[ssmdem]

180 days from the date of filing. Also, you do not actually have to receive the money/property in the 180 days, just the right to received the money/property has to be created. For example: you file bky today. On Friday, Uncle Fred dies and creates the right for you to receive an inheiritance. You don't get the money for 5 years because it is stuck in probate. The right was created in the first 180 days post filing so it is eligible to be attached by the bky court.

Depending on what exemptions you used, would dictate what happens. Say you used Federal exemptions and you still had $8k of wildcard left - you would amend the schedules, protect the first $8k and the rest would go to your creditors pro-rata. Let's say you won the lottery - it would be moot because you would win WAY more than you owed (in most circumstances). You would still have the bky on your record, but as a millionaire, I think you could find ways to overcome that

If I'm not the beneficiary though, then that takes that out of the equation. Both parents are still alive and married, they've just always put me as primary beneficiary on everything. She just wants to change it to me as secondary and each other as primary now. If something happens to both them at the same time, yes, I'll just have to deal with the bankruptcy end of it. But it's just my mom worrying about us and our future. Just kind of a Murphy's Law thing....

[jdcat]

Does the 180 day rule apply to canceling life insurance policies as well? I'm thinking of canceling our kids life insurance policies to cut down on expenses but we'd receive a cash out if I did cancel. The cash out would be right around 2K. Which would be a great way for us to start a savings fund for future emergencies.

I guess if I had to wait till the 180 days is over I can, it just sucks that I have to keep paying on these policies when I really can't afford them right now.

[starr4law]

Did you protect the cash out balance when you did your filing? Also, are you discharged? Voluntarily cashing out a life insurance policy has nothing to do with the 180 inheiritance rule.

[jdcat]

No we didn't exempt the cash out values. This is something I didn't understand with our attorney. He seemed to think the policies wouldn't get a second glance because our kids are the beneficiaries. And the policies weren't questioned at our 341. We are supposed to discharge around August 2nd.

If canceling these policies is not related to the 180 day policy then the cash out would be fine?

[starr4law]

I guess I would be hesitant to answer that - I would "think" that you would be fine . . . especially with the no asset report having been issued. However, you are awful close to your discharge date. Why not wait until then? Just to be safe?

If they are the kids' policies, how can they also be the beneficiaries?

[avmarathe3]

I believed that all of your assets upto the date you filed are included in the BK case anything that happens after that date is exempt. Otherwise all the new debt taken within 180 days of filing be discharged automatically?

[jdcat]

I'd prefer to wait till discharge to cancel these policies but the next premium payment is due this month.

It was our attorney who said the kids are the beneficiaries after looking over the policies. I didn't get that at all because I thought I was the beneficiary until they are twenty one when they then get to choose a beneficiary. He even listed our kids as the beneficiary on our schedule B.

I just pulled out our petition and see that he listed it as term life instead of whole. He obviously didn't look at these policies as closely as he said he did.

Sigh. I'm not surprised. I should have caught this before now. I never gave it any attention until now because I hadn't considered canceling until now.

Thanks for replying starr.

Sorry to the OP for derailing your thread.

[HHM]

See this post, it explains the look forward provision of the BK code

http://askmethner.com/the-windfall-provision-in-bankruptcy-what-happens-to-inheritance-and-life-insurance-proceeds-in-bankruptcy/

[avmarathe3]

Thanks HHM.