Life Ins beneficiary question

[wooisme]

Ok, I found this on the website of my lawyer:


However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

So, I have been in bankruptcy since Dec of 2006 so does this mean according to "this" statement that he COULD claim it and give it to the boys...

[Flamingo]

Ok, I found this on the website of my lawyer:


However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

So, I have been in bankruptcy since Dec of 2006 so does this mean according to "this" statement that he COULD claim it and give it to the boys...

Wooisme - I believe the 180 days after filing is applicable only to filing a Chapter 7. If you receive a settlement or other benefits/proceeds/inheritance during your Chapter 13 plan at any time during the Plan years, you need to advise your attorney. You really should check with the Chapter 13 attorney on this situation and if your brother-in-law should do better, he possibly can get a will in place or redo the beneficiaries on his policy. That would solve everything for everyone. I hope things work out for all of you!

[wooisme]

I still plan on checking it out but no this pertains to chapter 13:

In a Chapter 13 proceeding, wage earners with a steady income are required to participate in a structured payment plan which must meet the approval of the court and creditors. If a debtor inherits money or property within 180 days (or 6 months) after filing, these assets automatically become part of the debtor's estate and can be seized, liquidated and distributed to creditors.

[Flamingo]

I still plan on checking it out but no this pertains to chapter 13:

In a Chapter 13 proceeding, wage earners with a steady income are required to participate in a structured payment plan which must meet the approval of the court and creditors. If a debtor inherits money or property within 180 days (or 6 months) after filing, these assets automatically become part of the debtor's estate and can be seized, liquidated and distributed to creditors.

I think this will help you as to your 180 day issue as there is a difference between Chapter 7 and 13 as to that (see second paragraph); We ran into the inheritance issue 1 1/2 years into our Chapter 13...

"According to bankruptcy law, if a debtor receives an inheritance within 180 days of filing for bankruptcy, that inheritance becomes the property of the bankruptcy estate. In this case a debtor will be required to disclose to the bankruptcy trustee and debtors that they received an inheritance. The bankruptcy law calculates the 180 days from the date of death of the person granting the inheritance. For example, if your uncle left you a $100,000; but you did not receive it until 2 years after he died, your inheritance could still become the property of the bankruptcy estate if your uncle died within 180 days after you filed for bankruptcy.

An inheritance receives different treatment in a Chapter 7 than in a Chapter 13 bankruptcy. In a Chapter 7 bankruptcy, an inheritance within 180 days after your case was filed, will go to the trustee without any exemptions and will be used to repay creditors. In a Chapter 13, (before or after the 180 days) an inheritance will be used to calculate how much you should pay creditors. But in a Chapter 7 bankruptcy, if the inheritance is received after the 180 day time period, the trustee has no claim to it."

[wooisme]

Well, if that's the case he will not claim it. he is not the rightful heir to this policy and he will NOT claim it. After speaking to a bankruptcy attorney he CAN disclaim it! I repeat, a chapter 13 attorney has said that he absolutely CAN disclaim it then it will go fully to his sister and she can do with it as she wants which will be to give it to the deceased children of the insured where it was suppose to go in the first place. The lawyer went on to say that no one can MAKE you take the money and if you don't take the money it's not going to modify a bankruptcy plan and income does not increase. There's way too much proof that this money was to go to his children to begin with since they are truly the deceased next of kin.

Thank you for your input though