Do I have to disclose assets I don't have yet but might get? 22 Answers as of July 03, 2013

My father has been sick for many years and I might inherit his house shortly. I am past due on mortgage and credit card payments and about to foreclose on my house because I have been assuming he will pass any day for the past year and a half and haven't been working. I just can't risk loosing my house and I can't borrow money from him since he is so sick I don't want him to get worried but I want to file for bankruptcy ASAP to save my house. Do i have to include to the potential money I might gain this year if he does pass? What is the best way for me to save my house?

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Law Office of Asaph Abrams
Law Office of Asaph Abrams | Asaph Abrams
An inheritance is property of the estate (meaning it's subject to liquidation in chapter 7 and you need to protect it) if you became entitled to it (meaning the person died) before you filed OR if you BECOME entitled to it
Answer Applies to: California
Replied: 7/18/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
An inheritance is property of the bankruptcy estate for 180 days after the case is filed. If you are behind in your house payments you may want to consider a chapter 13 payment plan.
Answer Applies to: California
Replied: 7/18/2011
Law Office of Lynnmarie A. Johnson
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
You do not have to disclose a potential inheritance but if you become entitled to it while in bankruptcy or shortly there after, you have to amend to disclose it and it would potentially go to your creditors.
Answer Applies to: Michigan
Replied: 7/18/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
If an inheritance is expected, then it must be listed and even if it's not, it becomes part of the bankruptcy estate automatically if it is received within 180 days after the bankruptcy is filed.
Answer Applies to: Indiana
Replied: 7/18/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
A Chapter 7 bankruptcy will delay foreclosure, but it will not save your house. If you want to keep your house, you will have to catch up the mortgage payments. A Chapter 13 bankruptcy can help you catch up over time, but you will have to have a stable income in order to make it work. If you file bankruptcy, you do not have to anticipate inheritance, but if you become entitled to an inheritance within 6 months after you file then you must report this to the bankruptcy trustee.
Answer Applies to: Colorado
Replied: 7/18/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Any inheritances you receive within 180 days after you filed for bankruptcy is included in the bankruptcy estate. This is a tough situation because you do not know when your father will pass away and when you will receive the inheritance. If you are at risk of losing your home to foreclosure, filing a chapter 7 bankruptcy isn't going to save your property from that foreclosure, only a chapter 13 would allow you to include your past due mortgage payments and allow you to keep your home, and if you haven't been working as you state below, there are some questions as to whether you can even be approved for or afford a ch. 13 plan. There are several issues here with respect to how to keep your home, how to strategize on when to file and even if you did file for bankruptcy whether your inheritance would be exempt or you would be able to keep it anyway, depending on equity, etc. I would definitely recommend speaking with an attorney to review all of this property, value and exemptions to see which is your best course of action.
    Answer Applies to: California
    Replied: 7/18/2011
    The Law Office of Marvin Wolf
    The Law Office of Marvin Wolf | Marvin Wolf
    Short answer - yes. If you receive an inheritance within six months of filing, it is legally considered property of the bankruptcy estate and you are required to inform the trustee about it. You also have to disclose the potential inheritance in the petition. The potential amount of the net inheritance after paying outstanding bills of the deceased relative's estate can affect the strategy used and/or type of bankruptcy filed. There may be defenses in state court to the foreclosure, or you may deal with it in a bankruptcy. Sometimes you can buy time by requesting a loan modification, although that will not necessarily stop the foreclosure action.
    Answer Applies to: New Jersey
    Replied: 7/16/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Only if he dies within six months of when you file will the house be property of the bankruptcy. Unless that happens, the house is not part of the bankruptcy.
    Answer Applies to: California
    Replied: 7/18/2011
    Scott Leslie Taylor Attorney at Law
    Scott Leslie Taylor Attorney at Law | Scott Leslie Taylor
    Yes, any asset which you inherit before the day of filing or within 180 days of filing is part of the bankruptcy estate.
    Answer Applies to: Washington
    Replied: 7/16/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Yes you have to disclose it. And note that if he dies even 6 months AFTER you file, the Court can take the inherited property. You need a good lawyer to evaluate when and if to file.
    Answer Applies to: Georgia
    Replied: 7/16/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    You do not need to disclose an expectancy interest such as this. However, should your father pass away during your bankruptcy you have to disclose it. You may also over estimate what a bankruptcy can do for you. You have indicated that you are not working. This would present a problem as the only sure route to keep your home in bankruptcy is with a chapter 13. A chapter 13 requires regular income so you can make the plan payments
    Answer Applies to: California
    Replied: 7/16/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    The petition asks if there's a possibility you'll inherit any money within 180 days and, if you do, it becomes property of the Estate. You can file a homestead deed to protect some of it, but you only get $5,000 per debtor. Filing Chapter 13 may save your house if you can afford to make up payments while paying regular payments.
    Answer Applies to: Virginia
    Replied: 7/16/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    No. You only need to disclose assets you actually own. You may be asked at the 341(a) if you are the beneficiary of a will or trust. If your father should pass within 6 months of the bankruptcy, you will then need to disclose it to the trustee.
    Answer Applies to: Oregon
    Replied: 7/16/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    If you inherit during the course of the bankruptcy that money will be a nonexempt asset that has to be used for creditors in the case. The best way to save your house is: 1. File chapter 13 and get on a plan to resume payments and pay arrears 2. File suit to stop foreclosure based upon defects in the process or the paper work. It is a rare mortgage these days that cannot be attacked on a technicality. Finally, as long as you think you cannot lose the house you are more likely to do so. As soon as you view the loss of the house as a possible option and the various things you can do to keep it as other options, your chances of keeping will increase dramatically.
    Answer Applies to: Texas
    Replied: 7/16/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    You need to file a Ch13 bankruptcy to save your house. The bankruptcy is based on your assets at the time you file. Future inheritance would be in the bankruptcy estate, but if the trustee or creditors threaten to take it or require higher payments into the CH13 you can always dismiss your CH13.
    Answer Applies to: Mississippi
    Replied: 7/16/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Any inheritance you would receivewithin 6 months after filingmust be disclosed.
    Answer Applies to: California
    Replied: 7/16/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You have to report an inheritance that you receive within 6 months of filing bankruptcy. As for saving your house.... you could file a chapter 13 to do that, but you have to be able to make the payments plus a catch up payment. If you do not have a job that could be a problem. Jan
    Answer Applies to: California
    Replied: 7/16/2011
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