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Why should an inheritance be disclosed to a trustee after the tax year has passed but before the bankruptcy is discharged?
Wiki User
∙ 18y ago
Absolutely.
Wiki User
∙ 18y ago
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If an executor of a will waits six months after a bankruptcy to give the bankrupt his inheritance is it safe from the trustee?
Maybe. It depends upon the type of bankruptcy that was filed (state or federal) and the time the bankruptcy petitioner actually was awarded the inheritance, not accepted it. A bankruptcy case is officially finished when it is closed, not discharged.
Your personal bankruptcy was filed in 2000 can your name be added to a CD account?
If your bankruptcy was "discharged" in 2000, then yes. Discharged means it is done! If you are still in a chapter 13 bankruptcy, still paying the trustee--then no. If the trustee finds out about the CD, it will cause lot of problems.
Can you EARN large sum of money shortly after bankruptcy is discharged?
Bankruptcies are not discharged. The debts are discharged. If you knew going in to the bankruptcy that you would be earning a large sum of money, that information should have been entered on Schedule I at the bottom and if it was NOT disclosed, you might find yourself in federal prison for perjury and fraud. Your discharge would be revoked. If you did not know you would be earning a large sum and could not have found out before filing, no problem. If it is a lottery winning or an inheritance, rather than wages, you have to disclose it to the trustee and the court.
How does bankruptcy affect inheritance property?
You must list an inheritance (or even possibility of inheritance) within 180 days of filing BK. So if you are to receive an inheritance, even if your BK was already discharged, within 6 months of filing, you must inform the BK Trustee (who would have the right to take the inheritance to distribute among the creditors)
Will the bankruptcy trustee take all of your tax return refund?
I think it depends on when the bankruptcy is discharged, but it would be discussed at your meeting with the creditors and the trustee. If it wasn't discussed, then the refund is yours.
If you have been discharged from bankruptcy and then inherate can the bankruptcy agency take the money?
If the bankruptcy is a Chapter 7, inheritance income must be reported to the trustee and the court if received within six months. The trustee will probably want the money, unless you disclosed the fact that you were entitled to an inheritance with the filed documents and exempted the amount.There is a specific question about being the beneficiary of a will or a deceased person in Schedule B. Since it is rare that an estate is filed, much less resolved, within six months, your failure to disclose the possible inheritance could be regarded as fraud and might lead to your discharge being revoked.Obviously, if you did not know of the death or you were not related to the decedent and had no reason at the time to believe you were a beneficiary under a will, you may avoid fraud.Consult an experienced bankruptcy lawyer, since bankruptcy law is very specific, and the means of "inheriting" money are varied and may not come within the statute.
Is inheritance exempt in Bankruptcy?
No, the BK Trustee is to be notified of any inheritance received within 6 months of filing BK (even if you have already had your BK case discharged and closed). Short answer- no, you dont get to keep it unless you receive it more than 6 months from filing BK.
What happens to an inheritance during bankruptcy?
If the inheritance is based on a death within 180 days of filing bk, the inheritance becomes part of the estate and the trustee will use it to pay your creditors.
If you inherit money after filing bankruptcy can the attorney take it all even if you don't owe them that much ex. you inherit 25000 but owe them 5000 filed one year ago can they take all 25000?
Making no sense. Who is "them"? Attorney took the money?.. it wasn't the Court trustee? If you inherit money within 180 days after the discharge of your bankruptcy, you must notify your attorney who will notify the trustee and they may have claim to some of the inheritance. If the case was discharged a year ago, it is no longer property of the bankruptcy trustee.
How would a bankruptcy trustee discover an inheritance after a filing?
An inheritance is reported to the IRS. Federal bankruptcy officers (judges, trustees) have the legal power to access the person's tax records through the IRS AIS system.
Do you know if you go to bankruptcy court do you get discharged when you go there?
A person or persons would need to file for bankruptcy before having any contact with the court and/or bankruptcy trustee. A bankruptcy discharge is what is granted if the filing is deemed valid.
Can you file your taxes right after you file bankruptcy?
Certainly. You should have disclosed what you expect from your tax refund in the Statement of Financial Affairs, and you have to turn the refund over to the trustee whether you disclosed it or not. Failing to disclose and failing to turn the funds over to the trustee could get you in serious trouble.
