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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.
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∙ 12y 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.
Do you have to tell the bankruptcy courts if you receive an inheritance?
Yes you must inform whoever is looking after your bankruptcy that you have had an inheritance. You will be then advised what to do next, so don't spend the money as you could be breaking the law.
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.
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)
What happens to new medical bills during bankruptcy?
Those are not included to what you have declared. So, you must settle them and be responsible for them.
What happens to inheritance in a divorce or separation?
What happens to an inheritance in a divorce or separation depends on the terms of the inheritance. If the inheritance states that marriage is a factor, then the married couple will likely inherit the property since it is a common asset.
If a person receives an inheritance after being discharged from bankruptcy does the inheritance go to the bankruptcy?
No. Basically you start a new after filing. Your pre-petition assets are used to pay your pre-petition debts. That's bankruptcy. You should understand it before you do it. You don't chose what assets, and/or which debts...everything in your past gets involved. Then you start a new.
After bankruptcy you got inheritance can a creditor with a secured promissory note go after the inheritance?
No exactly. If you inherit any money within 180 days after you filed the bankruptcy, it will become property the estate. The creditors cannot go fater it, but the trustee can force you to turn over the inherited assets. See section 545 of the bankruptcy code.
What happens if a co signer files bankruptcy?
They both go bankruptcy
Why should an inheritance be disclosed to a trustee after the tax year has passed but before the bankruptcy is discharged?
Absolutely.
What happens to a judgment lien in a bankruptcy?
If the bankruptcy is discharged you are no longer responsible for the debt.
Can an inheritance be taken by the courts or creditors if the will has not been executed and most likely will not be until after filing for Chapter 7?
Some received before the discharge are collectable by the trustee. Whether an inheritance can be included depends on the the type of BK (Federal or State) and the laws that are applicable. If however, the BK has been discharged, no monies are subject to seizure by the truste/court. I'm a little confused by the answer above. There is no such thing as "State bankruptcy," though there are state receiverships which are similar but rare. The only bankruptcy that exists in the U.S. is federal bankruptcy, which is codified in Title 11 of the U.S. Code (though State law does affect the federal bankruptcy laws in each State to a certain extent). It is also not true that once the bankruptcy has been discharged the court can't come after inheritance proceeds. If the inheritance occurs within 180 days after the discharge, the court can still come after the money (see 11 U.S.C. 541 (a)(5)). If the inheritance occurs before or during the case, the debtor has an obligation to notify the court by listing the inheritance on their Schedule B, and the court can then go after the money assuming the State in which the bankruptcy is pending does not allow the debtor to exempt that type of property. Also, actual receipt of the inheritance funds is not necessary, a debtor has to list the inheritance if the debtor knows it is coming even if the debtor hasn't actually received it yet. In some states, one can "disclaim" an inheritance, which means the person can say they don't want it, and the inheritance is protected from the bankruptcy court, but this is complicated and rule-specific and one definitely needs to consult with their attorney about this. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
