Inheritance and Chapter 7 Asset Case

[vhs]

Hello again, I am waiting on an estate inheritance that has yet to close due to some infighting on the sale price of a property that the estate had an interest in.

I am in an asset chapter 7 now, and it has been over 180 days since I filed. I am pretty sure that in my state (if they ever do, it has been several years now for this to close), I am entitled to all the money when the property gets sold and the estate settles since it has been over 180 days.

I am going to check with my attorney on this, of course. But, any insight would be appreciated. Thank you.

[shipo]

As I understand it, any inheritance which may come your way will be the property of the bankruptcy estate; once all debts are settled, you will get the remaining money, if any.

[justbroke]

Hello again, I am waiting on an estate inheritance that has yet to close due to some infighting on the sale price of a property that the estate had an interest in.

I am in an asset chapter 7 now, and it has been over 180 days since I filed. I am pretty sure that in my state (if they ever do, it has been several years now for this to close), I am entitled to all the money when the property gets sold and the estate settles since it has been over 180 days.

That is an incorrect reading of the law. Any right to property (money, real property, etc) that you became eligible to receive by bequest, bequeath, inheritance, or marital settlement, within 180 days of filing, is property of the bankruptcy estate (subject to administration and exemption).

It simply doesn't matter when it gets paid or received. It is when you became entitled to receive it.

If you became entitled to receive it either before you file or within 180 days after filing, then it is property of the bankruptcy estate (subject to administration and could be exempted in part or in whole).

For example, if you filed on January 1, 2024 and your loved one dies on May 30, 2024, then the rule is still in affect. If the loved one died on June 29, 2024, the same rule is in affect. If the loved one died on July 1, 2024 then any inheritance would not be property of the bankruptcy estate.

You can substitute "your loved one dies" for "you divorce" to test the rule for property settlement agreements in a divorce.