Receiving an inheritance

[jake]

My father died recently and it is likely that I will receive an inheritance, although it might take awhile and the amount could be anywhere from $14,000 to $80,000--depending on reverse mortgages, house sale, etc. I have been in a Chapter 13 pool plan (five-year) since April, paying $500 a month.

Is this inheritance at risk to be applied to the Chapter 13 payments as a lump sum, or am I free to use that money as I see fit?

Assuming the rules might vary from state to state, I'm interested in how Kentucky courts and trustees regard this.

Thanks, anyone, for any light you can shed on this.

[david scurlock]

I would say since your bankrup has already been set at $500 per month,
then I would say they can not touch it., then again, I do not know what
your deal was on your bankrupcty...if it states anywhere like if you got
any sizable money, then you have to apply it to your bankrup, then that
is what you have to do, only you know that.

[jake]

Thanks for your observations. There is nothing in my paperwork that says I have to pay more than the agreed upon plan, but I'm afraid it might be a state law that inheritance is applied regardless until the total owed is met (not the plan total, which obviously can be smaller; but the total amount I owed when I filed). My attorney indicated by phone that it would go to the trustee, but her past performance suggests I should get a second pro opinion. I'll let folks here know once I find out what has to be done legallly.

[HRx]

Jake,

Monetary inheritances would be considered as solvency, less the monies that ones allows for "exemption" if such pertains to ones situation. It's difficult to speculate whether or not the trustee/creditors require you to make a lump sum payment towards your chp 13, or if they'd simply modify (increase) your payment plan because of a change in your financial status.

Good Luck!