Now what?

[gti1599]

My grandparents passed away in 2005, and 2006. I was never told i would recieve anything. Time goes by, and my finances crumble. So this may, i filed chapter 7. was discharged last week. Today i recieved a letter from an attorney saying my grandfathers estate will be distributed between my mom, my aunt, me , my brother and sister. Now what do i do?

[justdidit]

Talk to a lawyer? I know I was asked about any inheritance that I am to get, but I'm also curious if there is a statute of limitation for a persons time of death. I also remember reading something about up to 3-6 months after filing if someone passes away the trustee must be notified.

[tobee43]

well..if you read the question it clearly asks if you are expecting an inheritance within 180 days....first the question is ridicules, how could one answer that...so i truly believe the question is designed for those filing and know AT that TIME they filed that they will be collecting something.

probate courts could and many times do take well over 6 months in many states to even release the estate to the trustees....so your intent, i'm certain when asked the question was answered truthfully.

i would let it go...really if your chapter 7 is discharged leave well enough alone. you and your family have been through enough.

[gti1599]

This is crazy, 2 years of stress, and finally figuring out that bankruptcy was the right thing too do. Recieve my discharge. Finally feel some hope. And now this. I can't believe my mom never mentioned it. I never really asked though. Thanks for any help. Will have to get ahold of my attorney on monday.

[tobee43]

really....why...when was your bankruptcy discharged...you don't mention that at all.

if it was a few months ago you are fine...no need to incur atty fees...and now of course you'll let them know you have some money to grab...

when was your bk discharged??

[justdidit]

He said it was discharged last week in his first post.

[despritfreya]

In response to:

"I would let it go...really if your chapter 7 is discharged leave well enough alone"

That is the worst possible advice anyone could give (sorry tobee43).

You must notify your Trustee. Your right to the inheritance, no matter how old, IS an asset of the estate EVEN IF you did not know about it on the day you filed. It DOES NOT belong to you and the fact that you have your Discharge is irrelevant. The asset has not been abandoned by the Trustee.

The correct and legal thing to do is to contact the Trustee AND amend Schedule B as you have discovered an asset that was not listed. If you fail to do so and the Trustee somehow finds out you have opened yourself up to the possible revocation of the Discharge and potential bk fraud. Just not worth the risk IMHO.

Talk to your attny on Monday.

Des.

[tobee43]

i didn't see the last week...however, i still believe the question was designed for the time of filing and NOT after. ahhhhh and please don't be sorry des.....LOL!! we all have advise to share. the Op needs to do what they feel is right for them.

the trustee i was referring to is the estate trustee...and distribution could also take possibly another year...even two if the estate is tied up in probate. if you have an excellent atty...he or she will advise you to let it be.

it is NOT fraud when you truthfully answered the questions at the time of the signing of the petition.

i stand firming on this, but do what you feel is right. if you find the estate is tied up for the next few years...so are you.

[despritfreya]

Yes, it is not fraud when you truthfully answer the question. However it becomes fraud when you knowingly do not correct an otherwise innocent mistake. It is never the mistake that catches us, it is always the cover-up thereafter.

OP's situation has happened before and it will happen again. While I agree, OP will do what OP believes is in his/her best interest, if he/she fails to disclose and gets caught he/she will be hiring someone like me to do "damage control".

[gti1599]

Thanks again for the help. The timing of this is just crazy. If it isn't one thing, its another. Anyways, been lurking on this forum alot over the past months, never posted, but learned alot! So thanks everyone. I'll get ahold of my attorney on monday. Just can't believe my mom never mentioned it. I can't imagine it to be a large sum.

[tobee43]

des..there has to be a time when the fat lady sings....and that day comes when the discharge arrives at your front door.

people are so riddled with guilt and shame....i know of no law that says you have to ammend or re-open a closed bankruptcy to declare an amount of money you had no idea at the time of filing you would be receiving in the future.

simply said...is it then fair for someone that has filed because they lost their 100k job.., got discharged and a week later got a job that will now pay 130k. is this person suppose to notify the courts?

now this would be different if the Op found out prior to discharge. but once again the Op needs to do what he or she feels is best for their comfort zone. once again, if the Op has an excellent atty, they will tell them to leave well enough alone. (only because i have actually seen it happen and it was a HUGE amount that was inhert.).

[tobee43]

Thanks again for the help. The timing of this is just crazy. If it isn't one thing, its another. Anyways, been lurking on this forum alot over the past months, never posted, but learned alot! So thanks everyone. I'll get ahold of my attorney on monday. Just can't believe my mom never mentioned it. I can't imagine it to be a large sum.

one never knows....and i'm certain it will be just fine.

good luck with it and sorry for your loss.

[justdidit]

Not a lawyer, but here is the bankruptcy code that pertains to it:

Section 541 (a)(5)

http://www.law.cornell.edu/uscode/11/usc_sec_11_00000541----000-.html

Any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition, and that the debtor acquires or becomes entitled to acquire within 180 days after such date—
(A) by bequest, devise, or inheritance;
(B) as a result of a property settlement agreement with the debtor’s spouse, or of an interlocutory or final divorce decree; or
(C) as a beneficiary of a life insurance policy or of a death benefit plan.

Other items I read is that you have to notify the lawyer and trustee, but...I am curious if a notion of expecting something is different then actually getting something. You haven't realized a inheritance just a possibility of one that is going to come. Maybe you're only suppose to notify the lawyer/trustee after you received the inheritance if within the 180 days after discharge.

[tobee43]

that is 180 AFTER the filing....of the petition NOT the discharge....so we don't know when the OP filed...but if it was 180 prior to this notification OP should be fine...

"Besides property owned when the case is initiated, the property of the estate includes property recovered by the trustee from creditors or other third parties and property that the debtor becomes entitled to acquire within 180 days of the filing of the bankruptcy petition by inheritance, divorce decree, property settlement, life insurance policy, or death benefit plan."

[despritfreya]

Tobee43,

I direct your attention to 11 USC 727(d)(2) and 554(c) & (d) and other Code provisions.

727(d) allows a Trustee to seek the revocation of a discharge if a debtor acquired property that IS property of the estate. . . and knowingly and fraudulently failed to report the acquisition or entitlement to such property. Under (e) of that section a Trustee has 1 year after the case is closed to bring such an action. (As it sits right now, OP is aware of the issues and therefore a failure to report now is "fraudulent".)

521(1) requires a debtor to file a list of ALL assets - not just ones they know about. Rule 1009 gives the debtor the right to amend any Schedule before the case is closed. That right requires the debtor to amend schedules when he/she finds errors, including omitted assets.

541 states that property of the estate includes all "legal or equitable interest in property as of the commencement of the case" (OP, while not knowing of the inheritance, had a legal entitlement to it, regardless of how small or large, as of the Petition date.)

554(c) states that only assets that were disclosed by the debtor as required by Section 521(1) will be abandoned upon the closing of the case.

554(d) states that property not abandoned and that is not administer remains property of the estate. (So, if OP does not disclose the property will not be "abandoned".)

___________________

No matter how you slice it, as it sits right now, OP needs to amend and disclose and I beleive he/she states he/she will be contacting the attny.

Now, if we were talking about someone who found out about a long lost dead relative years after doing a bk, that would be a different story due to the 1 year window mentioned above. This issue becomes your "time when the fat lady sings".

Des.