Do I have to report money from a will in Chapter 7 bankruptcy? 12 Answers as of May 24, 2016

My grandmother died 5 years ago and in her will it said to split the sale of her home equally among her three children, one of them being my father. My father has passed away so now the money will be split between his children and my grandma's surviving children. The home has now been sold with closing to be done the end of May. I am in the middle of Chapter 7 bankruptcy and just completed my 341 meeting last week. Since she died five years ago, do I need to report this? The amount of money we are getting is around $3,000-$4,000 each.

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Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You need to report any inheritance that you obtain the right to that occurs within 180 days of filing your chapter 7. You didn't have the right until your father passed away. That would seem to include your situation.
Answer Applies to: California
Replied: 5/24/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You have to report any inheritance you become entitled to within 180 days of filing. So, yes you need to report this.
Answer Applies to: California
Replied: 5/23/2016
Ronald K. Nims LLC | Ronald K. Nims
You should have listed this expected inheritance when you filed originally. If you don't amend your filing to list it, you're committing bankruptcy fraud which is a felony. You may have thought you had bad problems when you were in financial difficulties and had to file bankruptcy, if you're caught committing bankruptcy fraud, you'll wish you just had financial difficulties.
Answer Applies to: Ohio
Replied: 5/20/2016
Marc S. Stern
Marc S. Stern | Marc S. Stern
Answer Applies to: Washington
Replied: 5/20/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
If you are still entitled to receive this inheritance, then yes you absolutely need to report this inheritance in your bankruptcy papers. Failing to do this could make you eligible to be charged with some very serious crimes in federal court. When they say not to make a federal case out of something, it means that a federal case is highly complicated and has severe penalties. This would be a federal case my dear.
Answer Applies to: Nevada
Replied: 5/19/2016
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Inheritance within 120 days of the filing date should be reported.
    Answer Applies to: California
    Replied: 5/19/2016
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Yes. You must report and the trustee will most likely take your share to pay your creditors. Or you may disclaim your share meaning it would pass as if you had predeceased your father.
    Answer Applies to: Nevada
    Replied: 5/19/2016
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    You should discuss this with your bankruptcy attorney. Since the funds are not slated to be received, the question is whether you listed the anticipation of this inheritance in your petition. Since is it a fairly small amount, depending on the availability of exemptions, your portion may be exempt. If the anticipation was not listed, you may want to amend the petition for the expectation and exempt the potential inheritance.
    Answer Applies to: Kentucky
    Replied: 5/19/2016
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    When you filled out the BR papers, you should have listed the inheritance as an asset. You ought to amend your Schedule B (personal property) and Schedule C, Exemptions. It is possible that you can exempt all your share of the proceeds . Retaining a lawyer in a bankruptcy is almost always worth the investment.
    Answer Applies to: Wisconsin
    Replied: 5/19/2016
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    I believe you do, but I have 30 or 40 more questions to ask you before I can answer your question. You may want to consider paying an experienced attorney for advice. A one hour consultation should do the trick.
    Answer Applies to: Colorado
    Replied: 5/19/2016
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The inheritance should have been disclosed in your chapter 7 filing. Most bankruptcy trustees will ask a debtor under oath if you expect to receive an inheritance or if someone has died and left you money or property. If the trustee asked you this question at the 341 meeting you should have answered in the affirmative. If you are only receiving $3000 to $4000 then there is a good chance that it can be exempted and not be a problem. I would notify your attorney immediately of this situation so your schedules can be amended immediately before your case closes. Failure to disclose this is potentially bankruptcy fraud.
    Answer Applies to: California
    Replied: 5/19/2016
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