Can I inherit money while in a chapter 13 bankruptcy? 12 Answers as of June 07, 2012

we are inheriting $40,000 as a share of selling my deceased father in laws house.
can we try to reach a settlement with the trustee and creditors to pay a certain amount, but in the meantime invest and or put some of the money into exempt options. What is considered exempt? Is a new mortgage, purchasing a used car and IRA's considered exempt?

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Law Office of Pho Ethan Tran PLLC
Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
It depends on the terms of your repayment plan. If the plan does not require you to report a windfall, then the inheritance must be reported to the trustee only if you received it within 180 days from the date the case was filed.
Answer Applies to: Texas
Replied: 6/7/2012
Alvin Lundgren | Alvin Lundgren
The inheritance will be taken by the trustee and applied against your debts.
Answer Applies to: Utah
Replied: 5/30/2012
Attorney At Law | Harry D. Roth
If you have not already filed your chapter 13 case, you should WAIT!!! You should get the $40,000 in your hands and shift it into exempt property before filing. If you are already in a chapter 13, then you may lose this money. Negotiate something with the trustee. In most cases, you can dismiss and start over and that fact may cause the trustee to take less than a total hard line. An IRA is exempt. Equity in a house is exempt. Some equity in a car is exempt.
Answer Applies to: California
Replied: 5/30/2012
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If your entitlement to the inheritance arose more than 180 after you filed, the money should be yours - but check your order of confirmation. If the decedent died within 180 days, see a lawyer about what can be done about the exemptions you have already claimed.
Answer Applies to: California
Replied: 5/29/2012
Marc S. Stern
Marc S. Stern | Marc S. Stern
Funds inherited during a Chapter 13 property of the estate. You MAY be able to negotiate something but that is a different matter.
Answer Applies to: Washington
Replied: 5/29/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Normally, the court will not allow you to pay off the case sooner unless you pay at 100% of the claims. If not, then you need to continue paying the chapter 13 plan. IRA and retirement accounts are exempt assets but the issue is that you are getting cash money that you will later invest. I recommend that you seek legal counsel of what you are able to do.
    Answer Applies to: California
    Replied: 5/25/2012
    The Needleman Law Office | Scott Needleman
    Are you currently represented? If you are you need to contact your attorney. There is no fee to come in and learn your rights. The mortgage can have 40,000 of equity protected, the car if no equity, protected, and the ira is exempt. Together we can create a plan of action to deal with your economic crisis.
    Answer Applies to: Ohio
    Replied: 5/25/2012
    Moore Taylor & Thomas PA
    Moore Taylor & Thomas PA | Jane Downey
    Yes just tell the trustee. Schedule C lists exemptions.
    Answer Applies to: South Carolina
    Replied: 5/23/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    You should already have an attorney you can ask these questions to. The answers are very complicated and quite confusing. If you filed a chapter 13 bankruptcy without an attorney, you should consider retaining one. In Florida, the home is exempt from the claims of creditors, retirement accounts, and up to $1,000 in a single motor vehicle are exempt. However, that inheritance is not exempt. But you have a plan of paying a certain percentage of what you owe, you need to follow that for the time being and consult an attorney on the question of whether you can settle with the trustee and creditors, early.
    Answer Applies to: Florida
    Replied: 5/23/2012
    AZ Law Group of Trezza & Associates
    AZ Law Group of Trezza & Associates | Stephen Trezza
    You have a duty to disclose the inheiritance to the trustee. You may or may not get to keep these proceeds based upon the chapter 13 rules.
    Answer Applies to: Arizona
    Replied: 5/23/2012
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    The answer depends on the state where you live and the exemptions that you used when your bankruptcy was filed. In Arizona your inheritance is not exempt. Depending on why you are filed a chapter 13 you could consider dismissing your chapter 13 and dealing with the creditors. Talk to your attorney. If you are not represented by an attorney then talk to an experienced chapter 13 attorney in your state.
    Answer Applies to: Arizona
    Replied: 5/23/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    During the bankruptcy, the inheritance is property of the estate and can all be seized,,, if your paying 100% of your unsecured debt than you do not need to worry but if you are opaying less then they will take it. You should probably speak to your attorney about a strategy before you get your money.
    Answer Applies to: New York
    Replied: 5/23/2012
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