Please Help

[maryusa]

I'm new and for starters I'm replying to a post simply because I don't know how to initiate one.

I filed Chapter 7 Oct. 15, 2005 and it was discharged December 5, 2005. I won't go into details but it was a HORRID situation and I filed for both a general store I owned and personal (both). My mother got cancer and passed away June 6, 2006. I stand to gain roughly 50k inheritance. My sister got a letter from a court saying we would all be investigated (for lack of better word) regarding any monies we owed the State of CT, bankruptcy etc. Am I going to lose this money? One of the business loans that could not be discharged has a 30K lein on my house already? I have not filed taxes (State) on this business for the 3 years I owned it quite frankly because I didn't make or have one penny.

Can someone shed some light? Am I going to lose this inheritence.

I initially filed this question saying I filed 13 -- I have since found out I filed Chapter 7

[SinkingFast]

I moved your post into a new thread for you, Mary.

Welcome to the Forum!

You might want to give at least a few details about your Ch 13. It's not common for Ch 13's to be discharged so soon after filing.

Did you perhaps mean Dismissed??

And for future reference,.......... If you need to start a New Thread, just use the "New Thread" button located upper left on the main page of any Forum Section.

[Minnymouth]

Sorry to hear about your Mother....... I know the feeling well....

About your inheirtance........ if you owe back taxes (state or federal) they will have to be paid. If you are in the process of bankruptcy, I'm sure any liens, debts that aren't discharged will have to be paid...... I'm sure the trustee will be contacting you.....

Question???? How can you own a business for 3 years and say you've not made any money and stay in business???

Right now you have major problems with the IRS, State taxes, and the Trustee.......

Keep us posted.

[maryusa]

Appreciate all your help

Well I left a good paying job for the American Dream -- it was a little shop that I rented near my home - a general store. How did I survive it for 3 years -- I robbed peter to pay paul. I'm a single mom so I was also paying a mortgage and home expenses so what money was made had to really stretch and it was penny to penny. I sold lottery and used alot of that cash to meet expenses etc.... It was a nightmare just trust me. I then was engaged to a man in Ireland who had 2 pensions - he relocated - died of a heart attack 7 weeks later -- the store really started to go fast then.

My mom then got diagnosed with cancer and died within 2 years. SOOOO I did file before the new bankruptcy law October 15, 2005. I had my hearing and I believe discharge date on December 5 (I will double check paperwork this evening). It took me a while to receive the paperwork that the case was in fact discharged but all that while I had a number. I believe it was chapter 13 (I'm 98% sure but will check). I also remember at the bankruptcy hearing -- did I expect to receive an inheritence in the next 6 months - answered no (and I did not) and was informed that If I did I needed to notify the bankrupcty court.

My mom died June 6, 2006 and her house just sold this week. My sister said they (courts) will do an investigation into bankruptcies, taxes, etc. I filed my Federal taxes always throughout my store but not my state. I couldn't afford to and since they never wrote or called -- I let it go! However, On my bankruptcy papers I put down I owed them 15k (guestimated) knowing that couldn't be discharged anyway. I owe the State Lottery Department 10k but have a payment plan with them. The business loan lien is always on my home - that eats my equity.

Am i going to lose the entire inheritence. I told my sister (executor) way back December 2005 she should have had that will changed while the assets were still my mothers and put my share in my kids name!

I'm not afraid this will wave a flag -- and they'll do an audit of that curse of a store.

[SinkingFast]

Based on the "Do you expect to receive an inheritance within 6 months" question, I'm guessing you filed Ch 7.

If you did file Ch 7, then the Law regarding inheritances and windfalls is 180 days from filing.

If that's the case, and you filed on 10/15/05, your 180 days were up Thursday, April 13, 2006.

[maryusa]

I'm sorry, I'm new! I originally posted my dilemna thinkinig I filed chapter 13. I just checked with my attorney and she said I filed chapter 7. I don't want to discuss much with her because she charges me so your help is appreciated. I was left with State debt that cannot go away but I'm on a payment plan. I was left with a lein on my house? Will they pay that lein off?

[SinkingFast]

As far as the BK Court goes, I'd think you're in the clear.

Governmental agencies are a different story. They may swoop in on you once the estate is thru probate.

But if you inherit enough money,........ Wouldn't you rather have them all paid off and the Liens lifted off your name and your house than pay thru a payment plan for Heavens knows how much longer??

[maryusa]

response

I had/have an arrangement for $100/month on the 10k owed and am quite happy with it -- it can never get interest added so why not. As for the 15k that I guestimated I owed to the State Tax Department --- I've never contacted them nor them me -- i'm guessing this will wave a flag but maybe not since I do not PERSONALLY owe them tax dollars (when they search) - it's under my old businesses name. The lein is 30K so if that goes it leaves me 0 investing dollars on the only inheritence I'll get and my 401k's etc all went into my business. Thought I'd get some inheritence to maybe send my 14 year old to school if I invested now.

[SinkingFast]

I understand where you're coming from, Mary.

We too had hoped to help our kids with college but it ain't gonna happen for us.

They can live at home. We'll repair and insure the cars. Help them with clothes and food. Keep up their medical and dental insurance as long as they stay full time students. But we can't pay tuition, books, and fees.

You've had it rough and I do hope that you get to keep at least some part of your inheritance. It would be a nice Grandmother's legacy for your daughter.