Future inheritence in 13

[COrnguy]

What happens if you inherit money/property while you're doing the 60 month repayment plan?

[lrprn]

What happens if you inherit money/property while you're doing the 60 month repayment plan?

If you inherit during your active Ch 13, you must turn it over to your trustee to distribute to your creditors who filed claims.

The good news....if your inheritance is sufficient to pay all your creditors who filed claims back at 100%, you will get back whatever is left over, and your Ch 13 will be done. The bad news....if your inheritance isn't sufficient to pay your creditors at 100%, you just lost your inheritance.

If you know now that an inheritance during your Ch 13 is a real possibility, ask the person to change their will now to put the money in a trust for you rather than directly inheriting. Their lawyer should be able to help sort out how to best accomplish that in their state.