Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Bankruptcy vs Inheritance = Options

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Bankruptcy vs Inheritance = Options

    Just as I was about to file for bankruptcy, my mother passed away. As the will reads, I stand to inherit a 20% share a of her estate, with my sisters heir to the other 80%. The estate mainly consists of my mother’s home. As my mother just passed, we aren’t in any rush to sell. Maybe comes spring. When it is sold, my share would be somewhere around $50K.
    My attorney is telling me to hold off, wait to the estate is settled. We then look into ways I could protect myself spending the money, like paying off some back child support, paying off a student loan, and/or making some repairs to the home I now live in. Then file afterwards.
    I’m just curious, what other options I might have to protect myself. I would like to keep some of the inheritance as cash, since it’s been so long since I’ve really had anything.
    Any advise, ideas, or suggestions would be sincerely appreciated.
    Thanks Jackson

  • #2
    Your attorney sounds like they are on the ball...the only other options would be to dump "some" of the money into an IRA, assuming you are otherwise eligible to have an IRA (e.g. employed).

    Comment


    • #3
      Some estates can take years to settle. You need to discuss this thoroughly with your attorney. Also, you may wish to consult with the Administrator of your Mother's estate, and/or the attorney for your mother. Perhaps your attorney can talk with that attorney...?

      My condolences on the passing of your Mother.
      "To go bravely forward is to invite a miracle."

      "Worry is the darkroom where negatives are formed."

      Comment


      • #4
        Using the money to pay non-dischargeable debt makes sense. But, another possibility occurs to me, but I'm not sure it is a better option. Do you own your own home? If not, is it possible to have the home distributed to you and your sisters so you are 20% owner and then you move into the house? You could then pay your sisters 80% of fair market rent and use the homestead exemption to protect your 20% interest. You and your sisters can sell the house after your BK is closed, unless you all want to continue with the rental arrangement. This will only work if your mother had sufficient assets other than the home to pay any debts she had and expenses of administration of her estate. Something you can run by your attorney if your sisters and the administrator of your mother's estate will cooperate.
        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!

        Comment


        • #5
          First remember a bankruptcy is based on your financial position on the day you file. Since you now have what could possibly be a good chunk of money available over the next year or so, that changes things for you and your financial picture. There are now funds that will be available that could go to your creditors. We received an inheritance during our Chapter 13 Plan and a portion of it was taken by the trustee. I highly suggest listening to your attorney (you did not say whether or not you retained this attorney yet but you did state you were just about to file for BK) or get a few more consultations regarding this and also maybe speak with the executor/executrix of the estate to see if an attorney is involved and get a consultation with them as to the situation.
          _________________________________________
          Filed 5 Year Chapter 13: April 2002
          Early Buy-Out: April 2006
          Discharge: August 2006

          "A credit card is a snake in your pocket"

          Comment


          • #6
            some excellent suggestions you have been given.

            now, my question is this, some of the trusts and wills also list that an executor can "hold" a property for all types of reasons prior to selling it and distribution: i.e. our terrible housing market which has taken a big bite our home values, i'm can't say for sure, but most likely in this market, it will reflect you are yours taking a loss on the property if sold at this time. i have recently seen a trust which can hold off sale of any property for 20 years, which i'm certain is not the case here, however, i'm just wondering due to the down market if that's a possibilities and how that would effect your situation.

            angelinacat points out, some of these situations take YEARS to settle and finally release and distribute the assets. one situation on the top of my head dealt with an estate where an atty, very much on top of everything, was the executor and also wrote the will and the trust, yet the probate court held the estate for over 3 years before anything was distributed. that's a long time to hold off! and, i'm not saying it would be your situation, but who knows how long it will be held up in probate.

            both Lady and Flamingo have some excellent thoughts that i would run by your atty, just to see the possibility of maybe applying one of those ideas. also the IRA idea would be a perfect solution as well!

            best of luck to you and yours and so sorry about your mom!
            8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

            Comment


            • #7
              Thank you for all the information. It helps ease my mind a little.

              First off, my inheritance would not pay off 1/2 the debt I'm in. Second, I've been so broke for so long, that I would like to keep something from the inheritance to fall back on. I want, and truely need, a FRESH START.

              Third, I haven't exactly retained a BK attorney yet, as he is the one that told me to hold off. Until the estate is settled.

              The adminastrator of the estate is my younger sister, and the attorney for the estate is my cousin. I have two other sisters and they are all willing to work with me to protect my best interests under the letter of the law.

              Far as moving into my mothers house, that is one thing I was looking into and trying to figure out how that might work. Yet I live in another state, 430 miles away. To say the least, would make things more difficult, and put me out of the new job I just started.

              I do not own the home I am now living in, but could possibly have the ownership transferred to me, then spend money making home repairs that would also be exempt, or so I understand it that way.

              I'm doing my research. Looks like I'm going to have plenty of time before I'm able to file, and figure out the best avenue to take.

              I did ask the BK attorney about an IRA and he didn't really give me a straight answer on that. I've been self employed the better part of my life and really don't have any retirement set up. I just turned 50 and looking at $235 a month at 65.

              Keep coming with the ideas. Not that I'm expecting one brainstorm but if I use a little bit of everything, I'm pretty sure it will all work out.
              THANKS AGAIN,
              Jackson

              Comment


              • #8
                Could he safely put 5k into a Roth IRA?

                So sorry for your loss, Jackson.
                ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
                Not an attorney - just an opinionated woman.

                Comment


                • #9
                  Originally posted by tobee43 View Post
                  now, my question is this, some of the trusts and wills also list that an executor can "hold" a property for all types of reasons prior to selling it and distribution: i.e. our terrible housing market which has taken a big bite our home values, i'm can't say for sure, but most likely in this market, it will reflect you are yours taking a loss on the property if sold at this time. i have recently seen a trust which can hold off sale of any property for 20 years, which i'm certain is not the case here, however, i'm just wondering due to the down market if that's a possibilities and how that would effect your situation.

                  angelinacat points out, some of these situations take YEARS to settle and finally release and distribute the assets. one situation on the top of my head dealt with an estate where an atty, very much on top of everything, was the executor and also wrote the will and the trust, yet the probate court held the estate for over 3 years before anything was distributed. that's a long time to hold off! and, i'm not saying it would be your situation, but who knows how long it will be held up in probate.
                  Regardless of how long it takes to distribute the assets from the estate, his right to a future distribution is an asset of the BK estate. If not exempted, it is subject to liquidation by the trustee, even if the trustee has to keep the BK open while awaiting distribution.
                  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!

                  Comment


                  • #10
                    Originally posted by LadyInTheRed View Post
                    Regardless of how long it takes to distribute the assets from the estate, his right to a future distribution is an asset of the BK estate. If not exempted, it is subject to liquidation by the trustee, even if the trustee has to keep the BK open while awaiting distribution.
                    good point, so here we find out there are NO statue of limitations with an asset case! those trustees can keep the case open as long as they want.

                    maybe between all the siblings they can buy back the OP's share, the trustee would get to that point anyway to allow an option to the other owner/s for a buy out. so, if they valued OP's share at 4k ( an example) each sibling would just have to come up with 1k to buy out the OP's share. i like that one LOL!! actually, i have seen it done prior to a bk, not with an inheritance, but with a partnered owned piece of property where the other owner brought out the person's share. it turned out to be a small amount a year prior to filing and although this person had to list the deed transfer on their petition, it ended up being no problem. that happened in nj about 5 years ago, and i do know things are changing now in these court rooms all over the country. where there is anything to be had, it seems as though the trustees are being more aggressive.
                    8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                    Comment


                    • #11
                      Note - the OP will need, at the time of filing if she files, to state that she was not the beneficiary of any estate for a certain period of time prior to filling (the lookback period can be anywhere from six months to two years) and will also have to state that she does not expect to receive any inheritance, etc. during the course of the Plan. I suggest the OP sit down witih qualified counsel as to this situation in her state to determine what, if anything, can be done in the event she needs to file...

                      The OP also financially has to be in a position to be able to file BK...she may not be insolvent.
                      Last edited by Flamingo; 12-09-2011, 01:24 PM. Reason: Sentence Added
                      _________________________________________
                      Filed 5 Year Chapter 13: April 2002
                      Early Buy-Out: April 2006
                      Discharge: August 2006

                      "A credit card is a snake in your pocket"

                      Comment


                      • #12
                        Originally posted by Flamingo View Post
                        Note - the OP will need, at the time of filing if she files, to state that she was not the beneficiary of any estate for a certain period of time prior to filling (the lookback period can be anywhere from six months to two years) and will also have to state that she does not expect to receive any inheritance, etc. during the course of the Plan. I suggest the OP sit down witih qualified counsel as to this situation in her state to determine what, if anything, can be done in the event she needs to file...

                        The OP also financially has to be in a position to be able to file BK...she may not be insolvent.
                        excellent point, i think here in flordia we have a few items on the petition asking within 2 years of the date of filing did you....

                        actually, if i recall, which i may be incorrect, there is even one question asking within a 10 year period.

                        if the OP sits with a professional that help make a determination of her position she will be far better off.
                        8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

                        Comment

                        Unconfigured Ad Widget

                        Collapse
                        Working...
                        X