Filed For Chapter 7 Bankruptcy (But now learned of an inheritance)

[LWPeacock]

My mother just filed for Chapter 7 Bankruptcy less than a month ago here in the State of Texas (Houston, Texas) and about a week ago, she learned that one of her aunts had passed away leaving my mother with a substantial amount of inheritance money.

With what we've researched through the web and from what other folks has told us, the bankruptcy will take a good portion of these funds.

Now this Chapter 7 Bankruptcy that she's filed was because she was about to be evicted from her house so to hold off on the eviction we decided to file but we are now considering withdrawing her bankruptcy altogether after learning about her inheritance.

If she proceeds with this bankruptcy, what could be the outcome of her receiving her inheritance, if any, or would it be prudent for her to withdraw as soon as possible?

Not to sound cold but she's been through a lot, I don't want her to get gimped and would like for her to at least enjoy something good before she passes away.

I want to thank you all for all your help and the information you've provided when replied to other members posts. The information was quite helpful.

Sincerely,
Leonard W Peacock

[despritfreya]

If she stays in the bk she will have to advise the Trustee of the asset. The Trustee will step into her shoes and be entitled to recover the inheritance for the benefit of the creditors. If there is sufficient $$ to pay all "allowed" claims (not all creditors will file claims), the claims will be paid and any remaining funds will be returned to her.

One does not have the "right" to dismiss a Chapter 7 and, in fact, when the Trustee finds out about the asset he/she will oppose any attempt to dismiss. Your mom has two choices: 1) Attempt to convert to a Chapter 13 so that she maintains control over the asset or 2) Quietly attempt to get the case dismissed by not showing up at the 341 if it has not already taken place.

Des

[LWPeacock]

Thank you, Des for your reply and guidance. I really do appreciate it!

Sincerely,
Leonard Peacock

[espo1357]

Seems like the move is to not file for the 7 and just let the creditors garnish if your mom is still working.

I would just not give those assets to the scum bankers or creditors, and I would find a way to do it legally, and then file when the time was right.

Rich people do this crap all the time, and get away with it.

[Flamingo]

My mother just filed for Chapter 7 Bankruptcy less than a month ago here in the State of Texas (Houston, Texas) and about a week ago, she learned that one of her aunts had passed away leaving my mother with a substantial amount of inheritance money.

With what we've researched through the web and from what other folks has told us, the bankruptcy will take a good portion of these funds.

Now this Chapter 7 Bankruptcy that she's filed was because she was about to be evicted from her house so to hold off on the eviction we decided to file but we are now considering withdrawing her bankruptcy altogether after learning about her inheritance.

If she proceeds with this bankruptcy, what could be the outcome of her receiving her inheritance, if any, or would it be prudent for her to withdraw as soon as possible?

Not to sound cold but she's been through a lot, I don't want her to get gimped and would like for her to at least enjoy something good before she passes away.

I want to thank you all for all your help and the information you've provided when replied to other members posts. The information was quite helpful.

Sincerely,
Leonard W Peacock

Your mother needs to consult immediately with the attorney who handled her Chapter 7 filing about this information since she has already filed and I am assuming represented by counsel. Best of luck to you both.

[LWPeacock]

I think that, not showing up to the Meeting of Creditors is a good idea. However she wouldn't get in trouble by doing that?

What if she simply retracts the bankruptcy application altogether? Would she be able to cancel the whole process herself, today for example?

[chicagoannie]

LWP - des is an attorney (so are 1 or 2 other who responded to your post,) and I have never, ever seen him give the "quietly" suggestion. He knows his stuff.

[AngelinaCat]

A Chapter 7 takes on a 'life of it's own'. Your mother has to get permission from the court to dismiss the Ch7 and it has to be a very good reason. Trying to shield an inheritance won't do, as Des indicated.

Here is an article that might help:

http://www.filingforbankruptcyonline.com/resources/bankruptcy/chapter-7/dismissing-chapter-7-bankruptcy-filing-a-new-case

She probably won't get into any trouble with the court by simply not attending the 341. However, once the court dismisses the case, the automatic stay will be lifted, and she will be subject to all the calls, potential lawsuits, etc. from her creditors that filing BK in the first place was designed to protect her from.

You and she need to see her attorney. Good luck!

[Flamingo]

I think that, not showing up to the Meeting of Creditors is a good idea. However she wouldn't get in trouble by doing that?

What if she simply retracts the bankruptcy application altogether? Would she be able to cancel the whole process herself, today for example?

LWPeacock - if your mother is represented by counsel, she needs to inform her counsel about the entire situation since the BK has already been filed and there are certain things that would need to be taken care of if she doesn't wish to proceed. You can't do them. If your mother filed without an attorney she may need to speak with one about this situation for her own protection.