My father passed away in December of last year. Between his IRA and other assets I stand to inherit about 23K. I am 14 months into a 58 month BK. I know I must report this when the estate is settled. My lawyer said to write down in what ways I would like to use it, (after it is settled). ie: buy a home on Land Contract and put some of this down, pay down the BK debt, etc... It is my fear that the trustee will see it, take it and add to my percentage, (32% of unsecured at this time). I would like to pay down on the debt at the very least and have fewer months to pay or lower the payment plan as medical costs are killing me every month, (I know you must pay 36 months minimum). The IRA monies are currently in a bank account because the lawyer said to hold on to it until the estate was settled. Is there any way I will be able to hold on to any of this money?
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My father passed away last year right as we were filing for Chap 13. I had a $16,000 inheritence coming, and we actually informed our trustee at our 341 meeting that we had this money coming and we were allowed to keep it all. My lawyer said if it had been much more, a portion of it would have had to go towards the plan to pay creditors. We were not asked in any way what our plans were for the money. The percentage we were paying to our unsecured debt did not change. Hopefully you will be able to keep most of it. -
Thank you for the reply, it eases my mind. However, I do realize that all states are different and all trustees are not the same. I have never had any trouble with the trustee and pray that he is as understanding as yours is.
I assure you that I would take a "healthy" father back in a minute and forego any inheritance, as I am sure you would too. My Dad is missed temendously, (as well as my Mom).
It does sadden me to read all of the troubles people have going through BK, but in it I also believe we all find strength knowing that we are not alone in our struggles.
God Bless you.Comment
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Don't know what i am talking about
I don't know if this would be legal but see if you could not tell the trustee and move it in to a roth IRA. This way you could leave it alone and wait till after the ch13 and then use it to buy a house with no tax penelty. It would be a shame to loss both your father and what he left you.
Good luck and sorry about your loss.Comment
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That's a really good idea. I'll discuss it with my lawyer. Thank you.Comment
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