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What do you do if you receive an inheritance shortly before your Chapter 7 meeting with the creditors?
Any money you inherit prior to a bankruptcy being discharged would have to be revealed to the judge and trustee assigned. These newly acquired assets would be factored into your financial picture and may be captured in whole or part to pay your creditors. It is possible that a sizable inheritance would cause your bankruptcy petition to be "thrown out". Consult with a competent attorney to learn the exact implications in your case and state.
What else can I help you with?
Are creditors notified if you receive inheritance money?
Yes, creditors can be notified if you receive inheritance money, particularly if you are in bankruptcy or have outstanding debts. In some jurisdictions, the estate may be required to settle any debts before distributing assets to heirs. Additionally, inheriting money could impact your financial situation, potentially leading creditors to claim a portion of your inheritance to satisfy outstanding debts. It's advisable to consult with a financial advisor or attorney for specific guidance based on your circumstances.
Do you have to pay inheritance tax in Florida?
In Florida, there is no state inheritance tax, so beneficiaries do not have to pay inheritance tax on assets they receive.
What is the effect of liquidation on creditors?
When a company liquidates, creditors generally receive less money than they owe. Creditors will have to write off the balance, so that their books can balance.
Can an heir receive an advance of money if the party from whom they are to receive the inheritance is still alive?
No. The "heir" has no right to that money whatsoever.
Can you get an auto loan after filing for bankruptcy but before it is discharged?
Yes, you can get an auto loan before bankruptcy discharge. If you have filed a chapter 13 bankruptcy, you must receive permission from the court trustee. Contact your attorney to begin the process. The court will set limits as to maximum loan amount and monthly payments. DO NOT apply for a loan of any type before getting approval from the court! Doing so could be grounds for dismissal of your bankruptcy, depending on the regulations of your particular court district. If you have filed a chapter 7, there are certain automotive lenders who will finance you after you have attended the (sect. 341) meeting of creditors. However, if you are unable to find one of these lenders, your discharge is usually granted within a few weeks of the 341 meeting and you will be able to purchase then.
Is the nonfiling codebtor invited to attend the creditor meeting in a Chapter 7 case?
Codebtors must be listed in the bankruptcy, and put in the list of creditors if you want the codebtor to receive notices. No one is "invited" to the creditors' meeting, but notices are mailed to all the creditors, which/who may attend if they wish.
What happens if you miss your meeting of creditors in a California Chapter 7 bankruptcy?
You will probably receive one more chance. You need to have your lawyer contact the bankruptcy trustee and see if it can be rescheduled.
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)
If you are say a year into a 60 month chapter 13 bankruptcy and you receive a small inheritance not enough to pay debts what is your obligation?
Your obligation is to let your attorney and/or bankruptcy trustee know about this. They will decide if the asset needs to be divided among creditors or included in your payments.
Are creditors notified if you receive inheritance money?
Yes, creditors can be notified if you receive inheritance money, particularly if you are in bankruptcy or have outstanding debts. In some jurisdictions, the estate may be required to settle any debts before distributing assets to heirs. Additionally, inheriting money could impact your financial situation, potentially leading creditors to claim a portion of your inheritance to satisfy outstanding debts. It's advisable to consult with a financial advisor or attorney for specific guidance based on your circumstances.
Is it legal to receive money from a deceased family member while in bankruptcy?
Yes, but the inheritance will become part of the BK estate, which means the money would have to be turned over to the trustee to pay off your creditors (i.e. you do not get to keep the inheritance).
Can an incarcerated person receive inheritance?
Yes, an incarcerated person can receive inheritance, as being in prison does not affect one's legal rights to inherit property or assets. However, there may be specific legal considerations depending on the jurisdiction, such as potential claims from creditors or issues surrounding the management of the inheritance. It's advisable for the individual or their family to consult with an attorney to understand any implications regarding the inheritance while incarcerated.
Are vendors guaranteed payment selling a company in Chapter 11 Bankruptcy?
No, but generally they receive higher preference than unsecured creditors that issued credit prior to the bankruptcy, should the chapter 11 company go to chapter 7.
How long after filing chatper 7 bankruptcy in Illinois is discharged?
It generally takes 3-4 months after your meeting of creditors to receive your discharge. The discharge is the court order that says that all of the debts that you have listed in your Chapter 7 are discharged, that you are no longer legally responsible for them and that you are entitled to a fresh start.
Can you keep your cash when filing for bankruptcy?
An inheritance is an asset. When you file for bankruptcy, you will need to list your assets & liabilities. It will be subject to deep scrutiny, because you cannot have your cake and eat it too.
How likely is it that the court will approve the purchase of a new home during a chapter 13 bankruptcy?
It depends on how the home purchase will impact your creditors. If you you payment will be doing up, then you will have less money paid to your creditors under the Chapter 13 plan. On the other hand, you might get approval if the purchase won't lower the amount of money creditors would receive under the plan.
Must you report a monetary inheritance to bankruptcy chapter 13 after the 180 days since filing?
In a Ch. 13, you are required to report an inheritance, regardless of how many days since filing. For a Ch. 7, you are required to report an inheritance if you are to receive an inheritance based on a death (because the death creates your right to receive an inheritance). Many people mistakenly believe that an inheritance must be reported if it is received within 180 days. Now you know.
