Can we file chapter 13 if there is an inheritance? 9 Answers as of April 25, 2011

My husband and I filed a bankruptcy Nov. 2008 because of his job. We're on a 3 year plan right now. I've turned over our tax refunds every year. I've done everything I'm supposed to do. My dad passed away a couple wks ago and I found out I was in his will for an inheritance of an IRA for my retirement and a sm. monthly IRA ck on another acct. My dad was not in best of health at 80 when we had to file. Our lawyer told us before we filed if we do a chapter 7 we would lose my inheritance if he would die before our bankruptcy was over and we would lose our house in Nevada bought in 2006. If we chose a chapter 13, we could keep our house and would not lose my inheritance if my father passed away before it was final. Is that true? My dad worked hard for his money. I don't want it lost.

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Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
I cannot give you legal advice if you have an attorney. That is why you paid him or her. You should call them and find out the consequences.
Answer Applies to: Alabama
Replied: 4/25/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
You have a confirmed Chapter 13 plan. You are obligated to pay according to the terms of the plan. I cannot think of a reason why you should pay an inheritance to the bankruptcy trustee. Apparently, you have a lawyer. Verify this with him or her.
Answer Applies to: California
Replied: 4/21/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
An inheritance 180 days past the filing of the petition is generally not property of the estate, but you need to check with your lawyer because I don't know what is in the order confirming your Chapter 13 plan. That lawyer still represents you.
Answer Applies to: California
Replied: 4/22/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
If you are in a Chapter 13 and are paying less than 100% of allowed claims, then the inheritance MAY be seized in part to pay your creditors.
Answer Applies to: Indiana
Replied: 4/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
In a Chapter 13 the inheritance becomes property of your bankruptcy estate. Whether you have to turn it over to the Trustee in your case depends on a number of factors, including what percentage you are paying to your unsecured creditors, what the order confirming your Plan and the Plan itself say, and whether the Trustee files a motion to increase your plan payments as a result. If you became entitled to receive the inheritance more than 180 days after you filed your bankruptcy case, you could theoretically protect it by converting your case to Chapter 7, but that could have other consequences regarding your home (depending on the reason you filed Chapter 13 in the first place).
Answer Applies to: California
Replied: 4/22/2011
    William C. Gosnell, Attorney at Law
    William C. Gosnell, Attorney at Law | William C. Gosnell
    The trustee will ask for this money buy your lawyer and the trustee can settle this.
    Answer Applies to: Tennessee
    Replied: 4/22/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    I'm sure your bankruptcy lawyer knows how your local trustee and judge feel about that. In some places the rule might be different.
    Answer Applies to: Virginia
    Replied: 4/22/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    You should talk to the lawyer representing you in your bankruptcy.
    Answer Applies to: South Dakota
    Replied: 4/22/2011
    The Law Offices of Alan M. Laskin
    The Law Offices of Alan M. Laskin | Jared B. Gaynor
    You need to ask your attorney, who presumably is still working for you. You probably paid good money to have an experienced attorney - use that. In my experience, most Chapter 13 trustees will not attempt to go after assets that develop that long after the filing of a case - but again, your attorney will have a better idea of the local attitudes of trustees.
    Answer Applies to: California
    Replied: 4/22/2011
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