Can the bankruptcy courts take my inheritance in a chapter 13 bankruptcy? 10 Answers as of January 09, 2012

Can the bankruptcy courts take my inheritance chapter 13? I am about to start my final year of a 5 year plan and I am about to receive money from a revocable living trust. Do I have to report it? Will they take it all or just increase my monthly payments to trustee?

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Heupel Law
Heupel Law | Kevin Heupel
Yes, it needs to be reported. The outcome depends on the type of property. Contact your attorney so you get good advice before doing anything.
Answer Applies to: Colorado
Replied: 1/9/2012
The Law Offices of Seth D. Schraier
The Law Offices of Seth D. Schraier | Seth D. Schraier
The effect of an inheritance while you are in bankruptcy depends on timing. If you inherit within 180 days of the date your petition is filed, that inheritance will become property of your bankruptcy estate. You will be required to bring that matter to the attention of the court and your trustee by amending the paperwork filed with the court to disclose the inheritance.It does not matter that you might not actually receive anything for months or years. The key date is when your loved one passed away. In a Chapter 13, the value of the inheritance will be used to determine, in part, how much you must pay into a Chapter 13 plan in order to be fair to your creditors. If the inheritance is received after that initial 180 day period, the effect is different. If you are in a Chapter 13 case, however, it may still be property of your bankruptcy estate. In addition, your Chapter 13 trustee may also contend that good faith requires devoting any excess funds or property to the plan.
Answer Applies to: New York
Replied: 1/9/2012
The Stockman Law Office | Mary Stockman Esq.
It depends on the nature of the asset. Yes, you are required to disclose any inheritance.
Answer Applies to: Florida
Replied: 1/9/2012
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you had a 100% plan, then probably not. However, if you had anything less than 100%, then the trustee will look to take that money and give it to the creditors.
Answer Applies to: New York
Replied: 1/9/2012
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Read your Chapter 13 plan as confirmed. It holds the answer.
Answer Applies to: Indiana
Replied: 1/9/2012
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    An inheritance becomes propety of the bankruptcy estate if it is received within 180 days of the petition.
    Answer Applies to: California
    Replied: 1/9/2012
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    It depends upon how much your plan is providing to unsecured creditors. Talk to your bankruptcy attorney.
    Answer Applies to: California
    Replied: 1/9/2012
    Law Office of Larry Webb
    Law Office of Larry Webb | Larry Webb
    Yes you must disclose the inheritance BUT it is not income and the trustee is NOT entitled to it. HOWEVER you should engage an attorney familiar with local practice to guide you.
    Answer Applies to: California
    Replied: 1/9/2012
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    You must disclose all of your assets and although you can keep the money, you will need to pay the unexempt portion to your creditors over the life of your plan.
    Answer Applies to: South Carolina
    Replied: 1/9/2012
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Only inheritances recived within 180 days of the filing are property of the estate. I have not seen your Order of Confirmation so look at it see if there is anything there about inheritances.
    Answer Applies to: California
    Replied: 1/8/2012
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