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    Inheritance in chapter 13

    Hi Everyone, I would like to thank everyone here for being members of this wonderful, caring, supportive group of like minded people in the same boat. I have learned sooooooo much about bankruptcy these last 5 months; I wished I had known about this group sooner.

    Thank you, Thank you, and Thank you
    Bkbiker

    My personal case, I feel like I have been abused and mistreated by my attorney, the trustee, and the very system that I looked to for protection. Following is a letter I am thinking of sending, I would greatly appreciate any feed back, editing, or in-sights one may have on this subject.

    Sincerely,



    May 15, 2006



    Comes now Debtor__________with his complaint and suggestions for chapter 13 trustees’, U.S. Trustees’, Members of Congress and Debtors’


    Facts about my chapter 13 case and the inheritance received;

    • I filed for chapter 13 on October 2001 and my plan was confirmed on February 2002.

    • I am a law abiding U.S. citizen and will continue to abide by the laws of the United States.

    • My Brother passed on December 2004 and left me a modest inheritance; I grieved his death and needed weekly therapy session to cope with my despair.

    • Subsequently I contacted my trusted attorney Mr. Burn with over 15 year experience in bankruptcy; Mr. Burn told me that more than 180 days has passed since my petition for bankruptcy was submitted and therefore the inheritance was not part of the bankruptcy estate. Mr. Burn also wrote a letter to the Trustee stating this point. See the attached letter

    • I have read my confirmed plan; inheritance is never mention.

    • I have viewed My Trustees’ web-site; inheritance is never mention there either.

    • I have viewed the U.S. Trustee web-site; inheritance is never mention there again.

    • I have read the bankruptcy codes; inheritance is mention only once in section 541; where it says with-in 180 days from filing for bankruptcy any inheritance is part of the bankruptcy estate.

    • I am now told by My Trustee that my inheritance is part of the estate and he has served me with a motion to dismiss my bankruptcy case. The previous letter I received from the trustee was matter of fact, un-sympathetic, stating that it would be “no trouble” at all for me to re-live the suicide death of my brother and provide him with additional information; This letter sent me into a tailspin of deep depression; a small gesture of compassion with a brief explanation of Section 1306 would have really helped in my understanding of the situations.

    • As a chapter 13 debtor, I have needlessly endured extreme emotional distress dealing with this issue of my brothers’ inheritance, his suicide, and the threat of dismissal of my case. I have acted in good faith and will continue to act in good faith in resolving this issue of my brothers’ inheritance; a tragic event which I had no control over. With no guidance or instructions I did the very best I could with the knowledge I had at the time.

    • I now pose the following questions ………………………………….


    1. Why was I not instructed as what to do if I received an inheritance during my chapter 13 bankruptcy?

    2. Why is this subject of inheritance in chapter 13 bankruptcy held in such an esoteric state? Only understood by a few.

    3. Why is there not clearly written language in the bankruptcy code and in the chapter 13 plans dealing with inheritance?

    4. Following are recommendations on how inheritances and death benefits might be properly handled and administrated in a compassionate manner for those affected by this event.

    a. Ask Member of Congress to revise the language in the bankruptcy code so that it is clear, precise and transparent for chapter 13 debtors whom receive an inheritance.

    b. Ask the Trustees’ to clearly write in the chapter 13 plans what to do in the event a debtor receives an unexpected inheritance and explain briefly why this is the case.

    c. Ask the Trustees’ to exercise a small measure of compassion when dealing with a debtor whom has experience the death of a loved one.


    Very Truly Yours,


    Debtor ________________


    c.c. Chapter 13 trustee
    U.S. Trustee Office
    The Honorable Ms. Wendelin I. Lipp
    The Honorable Senator Mr. Paul S. Sarbanes
    Last edited by bkbiker; 05-17-2006, 01:25 AM.

    #2
    Section 541 does not apply to Ch 13 filings.

    http://www4.law.cornell.edu/uscode/h...6----000-.html

    (a) Property of the estate includes, in addition to the property specified in section 541 of this title
    Filed Ch 7 - 09/06
    Discharged - 12/2006
    Officially Declared No Asset - 03/2007
    Closed - 04/2007

    I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

    Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

    Comment


      #3
      bkbiker, I definatly sympothize with you. It is enough to have to cope with an unexpected loss and at the same time, unsympothetic trustee's and lawyers.

      Unfortunatly, they have the law on there side.

      I agree about the lack of an instruction manual so to speak for Chapter 13 people. At the 341 meeting, they went in to general talk of rules...like, if you get an inheritance, notify your attorny, and then she said, "there are rules about gambling" (but they never said what those rules were). Give me a rule book or something.

      I personally think it is bull shi^ that a Chapter 13 debtor has to give up any inheritance they receive for a 5 year period (or however long the plan is). The rules should be the same as a chapter 7. I know it is the law, but it is bull $hit. Why can someone in a Chapter 7, who completely walks away from all debt, be allowed to keep an inheritance that they would receive 7 months after filing while someone who is stuck paying back as much of there debt as they can be forced to give it up for a period of 3-5 years.

      My mother is in good health, but she is in her 70's now. Anything can happen. Unfortunatly, she has everything going to us 4 kids. I'm trying to talk her into a trust. Guess the lawyers are telling her she doesn't need a trust because it isn't worth whatever the threshold for trust needs to be. I guess if I did tell her I was bk and she needed a trust to protect the assets, she might.
      Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
      Plan Confirmation 6/16/06 :yahoo:
      Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

      Comment


        #4
        You know what, tho,............

        I think you should send your letter anyway.

        Say pretty much what you've said here.

        How your attny told you that the inheritance would not be affected.

        Explain about the extra medical expenses you've incurred coping with your brother's death. That your Trustee has not taken those extra medical expenses into consideration in you plan. Even tho your costs increased, your plan payments remained the same. Ask that, at the very least, you receive compensation from the inheritance for your additional medical expenses.

        Ask that the Court make the wording more clear for regular folk to be able to understand in the future.

        Hopefully, your words will be read by at least on kind heart in the group that you plan to send the letter to. Maybe someone of the bunch will make some sort of ammends for you.

        I do apologize for not being more sympathetic to your loss in my previous post.

        My sister has been my best friend for most of my life.

        I cannot begin to imagine what you have gone thru and how your brother's loss continues to affect you.
        Filed Ch 7 - 09/06
        Discharged - 12/2006
        Officially Declared No Asset - 03/2007
        Closed - 04/2007

        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

        Comment


          #5
          I have another suggestion to put in your letter. Make inheritance in Chapter 13 the same as a Chapter 7, or such that inheritance can only be used to pay secured property of the estate..... No reason in Citi or MBNA to get the family farm.
          Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
          Plan Confirmation 6/16/06 :yahoo:
          Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:

          Comment


            #6
            Others that you need to send a copy of your letter too is the Attorney General in Washington DC.... he hires all the US Trustees, then they hire the Trustees.............

            Also a copy to your Congressman and State Senators wouldn't hurt either.....

            Sorry about the loss of your brother...... sad situation and then the BK Court wants to make matters even worse......

            People keep telling me that "Trustee's have a heart" - WELL, I haven't seen one yet that does!!! They see $$$$$ and they get greedy!!

            Send a copy of your memo to 60 Minutes for review..... maybe they'll do a segment on this topic.....
            Minny

            "It's amazing the paths that our feet sometimes follow in life".

            My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

            Comment


              #7
              How long have you been making payments in your Chapter 13 and were you paying back 100% , 80%, what?????

              Would you be better off letting the Trustee dismiss the bankruptcy, then taking part of the inheirtance and finish paying off your creditors.

              You should be in a position to pay off the remaining balance owed on any creditor in the paln at this stage....

              The trustee can only TAKE what is owed to the creditors - NO MORE......

              Your attorey needs to do some research on options that might be available to you regarding this problem....

              And yes, I would send those memos.
              Minny

              "It's amazing the paths that our feet sometimes follow in life".

              My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

              Comment


                #8
                Hi everyone,

                Thanks for all the good input; it sure helps to know this wonderful group is here for each other when we need help. I just needed to vent some of my frustrations, I will refine my letter and sent it off at a good time for me in the future, maybe something will happen or at least the visitors to this forum will be informed with better knowledge.

                Dismissal is not an option for me given my unsecured creditors; I need to do whatever happens so that I can receive my proper and legal discharge.

                After reading section 1306 of the bankruptcy code about 4 dozen times I finally began to understand it; life would have been so much easier if I had received a things to do and things not to do booklet while in chapter13. On the hand I feel almost like this is a form of entrapment, maybe the trustee’s don’t want us to know less we change the beneficiaries on wills and insurance policies.

                I have retained a new attorney to help with this case; there are still substantial complications with my brothers’ estate and relinquishing the assets to the bankruptcy may not be legally proper under California probate law, if we can’t settle with the trustee, than I will be in court in about 3 weeks.

                Take care,
                bkbiker

                Comment

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