Need help with Ch 13 to 7 with recent gift

[mkb]

I filed for ch 13 in Jan 2011. The only reason we went with Ch 13 was to try and save the house, but we were not able to and surrendered the house in August. We would like to switch to Ch 7, however have recently received $45,000 from a book that was part of my Mom's estate, my aunt recently sold. Can we switch the $ to a college fund, can we keep any of the $$? Can we switch to Ch 7 and keep any of the $? I really appreciate any help.
MKB

[despritfreya]

Was this gift from an inheritance that you were entitled to?

Des.

[mkb]

Yes it was, my Mom passed in 2003, the book was sold in 2009 without my knowledge, we filed for bankruptcy in Jan 2011 and I just received the cashiers check a month ago.

[despritfreya]

Then this asset, which should have been disclosed by the filing of the appropriate amendment once you learned of it, belongs to your creditors. If you convert the Trustee takes it. If you stay in the Chapter 13 it must be accounted for. You need to discuss this with your attny. The ONLY way for you to keep it is to "quietly" allow your case to get dismissed. If you need a bk in the future you will have to put a lot of time and space between the dismissal and filing again to avoid any allegations of bk fraud.

Des.

[justbroke]

Yes, it is indeed property of the bankruptcy estate. There's no real way around it that I can think of.

[mkb]

ok thanks just found out about it 3 weeks ago when the check came, around the same time I lost my job, I was hoping there was some way around it, or way to put it away for my kids, appreciate your help

[SMinGA2]

When your mom passed away, did the book become your property or your aunt's? Since you were not involved in the sale, it made me wonder about ownership. If the book belonged to your aunt, and your aunt recently decided to send you the $, it might not be the same situation as having owned it (unknowingly) all along.

Perhaps see if you can get an appointment to meet with your attorney. He/she is your best resource right now.

[keepsmiling]

Good luck. I really hope you find a way to make it work.
Just curious... that must have been SOME book. Can you tell us about it? In case I have one hanging around?