Hello. I live in AZ (a community property state). Does anyone know what the scenario would be for a married person who files Chapter 13 and then the non filing spouse gets a small inheritance? In a 13, is the inheritance still sole and separate property like it is in a 7? Thanks.
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What is separate property is determined by state law. So, if it is separate property in a 7, it is separate property in a 13. What I am not sure about is whether the non-spouse's inheritance could be considered income of the debtor if it is used for the benefit of the community. To be safe, the non-filing spouse should keep the inheritance completely separate from the couple's community property. Also, the filing spouse should consult with his/her attorney to make sure there is not an obligation to report the inheritance to the trustee.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!
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