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Chpt 13 over 8/2020, but Inheratance soon..now what?

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    Chpt 13 over 8/2020, but Inheratance soon..now what?

    Hey everyone, thank you for all of your help over the years. My Mother died last year and my Dad a few weeks ago. I am in a Chapter 13 10% in Kane county IL which may be over this August (36 month plan). After talking with my attorney he wants to wait and see what the inheritance check will be, if any after probate, to tell me what will are will not happen. All that I am paying off now is my car that I wanted to keep in the chapter 13 plan. Their are many high end unsecured creditors that where stopped being paid through the plan last October. I guess now, if I do receive a inheritance check it may pay off what is left of the car ($3,300) and the rest may go to the unsecured creditors? I donkt know. I try to look at both sides...I know my parents would want me to use the money wisely, like get out of debt and I would/will, but the ideal that the money may go to the unsecured creditors that are already closed (?) really upsets me. This is the last thing that I will ever have from my parents and I want to do the right thing with it. Any help, comments, advise, prayers would be very much appreciated. Thank you.

    #2
    Hi lukesy...I am very sorry for the loss of your parents. I think all you can do is wait to see what is decided when you receive the inheritance check. Hopefully, if it's decided the money has to go to the plan, it won't be all of it. I was in a 100 % payback plan and when I was in car accident a small part of what I received had to be given to the trustee. I pray for peace for you as you go through this tough time.
    Filed Chapter 13 - 07/20/12
    Discharged 8/2/16

    Comment


    • lukesky
      lukesky commented
      Editing a comment
      Thank you so much for your kind words sophieanne. It would be nice if I could use the money, if any, to pay the hospital, doctor bills and rehab a total of around $5,000 that I have incurred since my Chapter 13 started. Been paying on these every month plus the chapter 13 plan. I will wait and see what happens, all is new territory for me.

    #3
    lukesky, I'm saddened to read this post. It seems that my family (aunts, uncles,friends, and one parent) are all going to the other side.

    As most States do, Illinois does have some protections for insurance policies. The question is just too specific for Illinois that I can't answer whether or not it is 100% exempt or if any portion is exempt.

    As for your plan, if a large amount of money does come in, it gets paid in priority order. Secured debt, Trustee and attorney fees, and other administrative debt are first. Then it goes to priority unsecured debt (taxes), and then general unsecured debt.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


    • lukesky
      lukesky commented
      Editing a comment
      Thank you just broke. It is so tempting to just try and hide an inheritance, but I would never truly enjoy as it was meant to be from my parents because I would always be looking over my shoulders worried that someday, and it would happen, I would get caught. Not worth it. I will show my attorney and see what he says and if anything is leftover after my chapter 13 is paid off, then it will be mine to ENJOY! Thank you.

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