Anyone know what percentage of an inheritance the trustee would get?

[catleg]

Talk to a lawyer to get an idea of what's possible.

How much credit card debt have you included in your ch13?

Sounds to me, with the mortgage modded, and once you pay enough into the 13 to cover the priority tax debt, and with no one having died yet, you're in a position to drop out of the 13 if necessary with no strings.

Then the question is shielding the assets from judgments (do you have any yet) and trying to get them into exemption categories before filing a ch7.

People have a funny way of not dying when you expect it. I have this kooky aunt who just keeps going and going.

[Flamingo]

You should probably talk with your parents and siblings and offer to front the legal costs to change their will to support a spendthrift trust. This will look to them (hopefully) like you're taking a responsible step to protect their assets.

A spendthrift trust does not protect the money once it is in the beneficiary's hands. Also the beneficiary is aware of the amount of money that he/she will receive under the terms of the trust and if those disbursements occur during a Chapter 13, they need to be reported. The only way during a Chapter 13 to protect any inheritance money is to just not inherit it. Anyone in such a position as this should talk to an estate planning lawyer to get correct information as even some states do not allow spendthrift trusts.

[Flamingo]

Thanks again for your response.

But, what do you think would happen if the inheritance is well above the debt? And with a home upside down?

If you are that concerned, I would suggest speaking with the attorney who did your father's will and/or contact an estate planning lawyer for a consultation as to your situation.

[catleg]

Milton eventually burned down the building he worked in, and ran off to the Bahamas with the loot.

That option might work for the inheritance issue also. Head for the border.

[espo1357]

You should probably talk with your parents and siblings and offer to front the legal costs to change their will to support a spendthrift trust. This will look to them (hopefully) like you're taking a responsible step to protect their assets.

Thanks Lumbergh. What was that guy's name anyway?

Guess I need to get my head out of my ass on this. Should have told them right away when I filed, and not let it get to this point.

Pride sucks.

[catleg]

You should probably talk with your parents and siblings and offer to front the legal costs to change their will to support a spendthrift trust. This will look to them (hopefully) like you're taking a responsible step to protect their assets.

[espo1357]

If the person has not died yet, and you can talk about this with them, you can have a spendthrift trust created to hold the assets and protect them from creditors. Or if you have other siblings, you might as well get yourself dis-inherited so at least the BK case doesn't get your parents money.

Finally, a straight answer.

That is what I was looking for. Not what I wanted to hear, but that's what I thought.

The "wolves" are not getting a dime, that is for sure.

[catleg]

If the person has not died yet, and you can talk about this with them, you can have a spendthrift trust created to hold the assets and protect them from creditors. Or if you have other siblings, you might as well get yourself dis-inherited so at least the BK case doesn't get your parents money.

[espo1357]

The Trustee took half of the amount my husband received after all necessary estate bills were paid, house sold, etc.

Thanks again for your response.

But, what do you think would happen if the inheritance is well above the debt? And with a home upside down?

[Flamingo]

Job loss is coming for sure.
May I ask, what percentage did they take from your inheiritance?

The Trustee took half of the amount my husband received after all necessary estate bills were paid, house sold, etc.

[espo1357]

I think your most important point out of all this is that you will lose your job soon. There is no guarantee you will receive this inheritance any time soon and without a job you cannot even fund a Chapter 13. You need to take one step at a time and realize most people going into Chapter 13's are beneficiaries in someone's will and don't even know it. Have you actually seen a copy of the will in which you are mentioned as a beneficiary? Or is this all just hearsay from a relative? You need to get your BK organized first after your job loss because you need to find out if you can find employment ASAP to continue your Plan, modify, switch to a Chapter 7, etc. We went through the inheritance thing in a Chapter 13 with the unexpected death of my father-in-law. All that needed to be reported to the attorney and trustee as the inheritance was part of our financial estate/house during the Chapter 13. Also with BK comes anxiety over every little detail and events that may or may not occur. Take one step at a time - your major worry is your job loss at this point.

Job loss is coming for sure.

May I ask, what percentage did they take from your inheiritance?

I am definitely getting the inheritance, so I think I am just going to request dismissal or miss the payments OR file the 7 if I qualify (then again, filing a 7 is a risk because of the 180 day rule).

Perhaps the best move is just dismiss (I have no judgements anyway) the 13 and then let them come get me.

If it gets really bad, I go to a 7 when I qualify (and I will soon).

Circumstances changed when my parent got sick, and I have no idea how long they will live, and then I file a 13 to save the home (bad move, as the house is not worth anything), and a few cc's that don't even have judgements or garnishments or anything. My attorney is a good guy, but he was looking to get paid and didn't have my best interest in mind (looking back) because I should have never tried to keep the home (my fault, being stubborn).

Thanks for your response.

[justbroke]

Side question.... does Florida use garnishments for trustee payments?

Technically it's not a garnishment. It's a Wage Deduction. Generally speaking, most Trustees prefer that you get a Wage Deduction Order entered but I haven't seen that it's a requirement. In the end, it's better that you do.

[Flamingo]

I understand.
But, what if the inheritance is going to cover the BK plan, and then what?

If I have to pay back 50k over 5 years for example, but have 150k in debt, then that is a good deal, of course.

but, if the inheritance is 300k, then what happens? Does the 50k just get paid, and I am done. Or does the entire 150k have to get paid.

Also, I am under 100k on the house, so why would I want to have to use my inheritance to pay off the arrears on the house?

Called about 5 lawers today, and nobody had an answer.

Its all about making a good business decision.

I think your most important point out of all this is that you will lose your job soon. There is no guarantee you will receive this inheritance any time soon and without a job you cannot even fund a Chapter 13. You need to take one step at a time and realize most people going into Chapter 13's are beneficiaries in someone's will and don't even know it. Have you actually seen a copy of the will in which you are mentioned as a beneficiary? Or is this all just hearsay from a relative? You need to get your BK organized first after your job loss because you need to find out if you can find employment ASAP to continue your Plan, modify, switch to a Chapter 7, etc. We went through the inheritance thing in a Chapter 13 with the unexpected death of my father-in-law. All that needed to be reported to the attorney and trustee as the inheritance was part of our financial estate/house during the Chapter 13. Also with BK comes anxiety over every little detail and events that may or may not occur. Take one step at a time - your major worry is your job loss at this point.

[ShooFly]

Side question.... does Florida use garnishments for trustee payments?

[espo1357]

I am not sure why people freak out over this issue. I guess it is the vision of dollar signs in their head when they see the inheritance. However, if you really think about it, the situation is a wash...what are you actually going to do.

1. If you had not filed BK 13, and got the inheritance, you would probably have used it to pay off your debt or some portion of it anyway?
2. If you are in a 13, it is more cost effective to pay off the 13 than dismissing. If you dismiss, all the debt comes back to life and you are back to square one and most of the time, it will cost you more to resolve the debt at that time.

In the BIG picture, it would be a very rare set of circumstances where it made sense to dismiss a chapter 13 because of a large inheritance. The GOAL is to be out of debt; initially, you were using chapter 13 to do that, if an inheritance comes along, then you use it.

I understand.
But, what if the inheritance is going to cover the BK plan, and then what?

If I have to pay back 50k over 5 years for example, but have 150k in debt, then that is a good deal, of course.

but, if the inheritance is 300k, then what happens? Does the 50k just get paid, and I am done. Or does the entire 150k have to get paid.

Also, I am under 100k on the house, so why would I want to have to use my inheritance to pay off the arrears on the house?

Called about 5 lawers today, and nobody had an answer.

Its all about making a good business decision.