Can you keep your cash when filing for bankruptcy?

Answer 1

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.

Answer 2

The type (Chap 7 or 13) could have a factor, and I'm not certain all trustees consider it from the date of filing or the date of dismissal, especially depending on how co-operative/fast things have moved along, but...It is my understanding that if you receive (and I suspect that means "have a right to receive", not just you didn't pick up the check) an inheritance within 180 days (6 mos.) after filing for bankruptcy, that money/property may have to be paid to your creditors if not exempt. It looks like you are past the 180 day rule

Answer 3

An inheritance to which you have a right within 180 days after your petition date is the property of the estate to which the trustee has the right. Thereafter, you get to keep it (in a chapter 7).

In England, you might using a Deed of Variation, get to keep your inheritance. I presume the object of the question is information on shielding inheritance from creditors.

Answer 4

In any chapter of Bankruptcy, you have to list with the courts any assets or incomes, before and during the bankruptcy. So, if you are scheduled to receive any type of inheritance during the bankruptcy, you have to inform them of this asset. I know with Chapter 7, you are allowed a level of value for a home and also income. Over and above those levels, the court might take these assets, which might just be your inheritance monies. And with Chapter 11, your income and assets come into play upon paying back your creditors. So, I would definatly think they would take into consideration these new monies you would receive through your inheritance.

Answer 5

When filing chapter 7 bankruptcy there are statutory limits on inherited property. If the value of your property falls below those limits you may keep it. If it is over the limit you will likely lose the property to the trustees. Another option is to file Chapter 13 and you will be able to keep the property.

Answer 6

Yes, but that money would become part of the bk estate- which would be used to pay off your creditors.

Answer 7

Depends on the exemptions available to you, depending on your state. But dont expect to be allowed a large cash exemption.