Chapter 13 and Inheritance - More Info

[DJC]

Thank you for the responses in a previous thread. I was not sure if I should reply in that thread or start a new one. But here is the scenario, I am hoping to predict an outcome, or at least a good guess.

Our 341 meeting is tomorrow and there was a death in the family 3 weeks ago that will have an inheritance involved. At the 341 meeting I will disclose this fact, but nothing more. The dispersement of funds will probably not happen until late summer. The inheritance will exceed the amount owed to the creditors. My guess is we will be forced to pay off the creditors in full. If that is true, and I am willing to accept that, I am wondering if we are discharged from the bankruptcy and we are then free and clear of the trustee?

Thank you very much for those who have advised me so far.

[zeezee]

I think unless your getting sued or about to lose your home, just wait for the inheritance and pay off your creditors then...

[gld2pan]

Sorry for your loss. That's alot to deal with in addition to filing bankrupty. Two years into our 5 yr plan my father in law passed. Our inheritance wasn't enough to cover the debt at that time. We were required to turn funds over to trustee. It did put us into 100% and we are looking at making last payment this month and ending 2 yrs early.

I would hope your attorney is good and can give you advice. Ours gave us a few options once the trust was dispersed and we had the money.

I would think you'd be required to pay creditors in full. But every case, state and such are different.

I wish you and your family all the best.

[despritfreya]

Assuming you stay in your Chapter 13, to the extent you cannot exempt the proceeds from the inheritance, yes, you must turnover the inheritance to the Trustee. If the amount is sufficient to pay all allowed claims in full then your Plan will end and you will get a discharge.

As you sit here today you cannot determine the dollar amount that will be needed to pay all allowed claims. The claims bar date must pass before you can estimate what the amount might be, including the Trustee’s percentage. Between now and the time the inheritance comes in you must fulfill your obligations under the Chapter 13 Plan.

Please make sure you discuss all of your options with your attorney and, my condolences to you and your family.

Des.

[catleg]

Keep in mind the following advantages to going through with the ch 13 plan:
1. some creditors may forget to file a claim.
2. check your state exemptions as well as federal.