My Ch 7.went through last Sept 2011 with no issues. Recently a family member has become ill and I stand a good chance of inheriting about $150,000 Will the court or trustee come after that? At what point is inheriting money not a worry?
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Depends on on the dates of your situation - My lawyer told me any "windfall" within 6 months needed to be reported (lottery, inheritance, etc)
"The answer to whether an inheritance is included in the bankruptcy estate depends on the decedent's date of death; it does not depend on when the debtor received the inheritance. The bankruptcy laws require a debtor to report inheritances received within 180 days of the bankruptcy. The time period starts when the decedent leaving the inheritance dies and covers the time period before and after filing bankruptcy. Even if a debtor receives the actual inheritance two years after the bankruptcy, if the decedent leaving the inheritance died 180 days within the bankruptcy filing, the debtor must report it."
from: http://www.ehow.com/info_8035220_inh...#ixzz1p7wuCMbfJessica
Filed Chapter 7 (Minnesota): 5/23/11
Discharged 8/30/11, Not yet closed... -
Filed in April 2011 and My bk was discharged the first week of Sept 2011 No one has passed yet but would it be at the time the will is read or when I recieved a check?Comment
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Sounds like it depends on when the person dies in relation to when you filed. If you filed in April, you should be fine - but I guess i would double check with my attorney juuussssttt to be sure
Jessica
Filed Chapter 7 (Minnesota): 5/23/11
Discharged 8/30/11, Not yet closed...Comment
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In the context of a Chapter 7 if the person passes within 180 months after the filing date the inheritance (if any) belongs to the bk estate. If the person passes on day 181 or thereafter the inheritance (if any) belongs to the debtor.
You are beyond 180 days after the filing date therefore this is not an issue.
See 11 USC 541(a)(5)
Des.Comment
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My dear FIL passed unexpectedly right after our 341. As des states you must report it if they pass within 180 days of the filing date. I've struggled with this b/c although the amount is not huge my FIL worked his entire life and left this to his children. We would have most certainly used the inheritance to pay off/down our debt and would have avoided filing but we're not in control. The most important thing to is be above board with your attorney and trustee. I just keep reminding myself how fortunate we are to be almost at the end of all this stress. God Bless.Comment
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Originally posted by despritfreya View Post
Did I say that???? Obviously I did not mean the equivalent of 15 years. Certainly would be interesting though.
More like 180 days.
Des.Comment
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Hi JessMN. So, if someone died two years ago and left an inheritance for a bk7 party; but that person has not claimed it and recently filed, is it reportable? TIAComment
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Hi Des. I asked JessMN but then saw your post; so thought I 'd ask you too (hope you don't mind). What if an inheritance was given two years ago, is still unclaimed, and the person just filed bk7? It was not reported since it wasn't claimed. Does a revised reporting need to occur now or at the 341 hearing in couple weeks? TIA!Comment
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If a debtor is entitled to an inheritance on the day he/she files bk (meaning he/she has not previously renounced the inheritance pursuant to state statute), regardless of the status of payment, it is an asset and must be listed - it is a receivable - something owed to the debtor. The Chapter 7 Trustee will have a right to claim the asset if there is no available exemption to protect it. Failure to list the asset could result in the loss of the discharge. If the asset has not been properly listed on Schedule B the debtor should immediately amend the Schedule - not wait for the 341 meeting.Originally posted by NewStart2012 View Post
Des.Comment
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Thank you Des!Comment
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