Do I need to report to the court that we already received the inherited money before cashing them out? 14 Answers as of January 15, 2014

We filed May 20th, it was discharged August 27th. It was a no asset case. In November we were told by the executor of an old estate (my grandfather passed away years ago) that there may be some savings bonds but they had not yet located them. I, in turn advised my attorney and they advised the trustee. We just received them. We have some urgent needs for our house so I'm wondering do I need to still report them to the court and see what they do or am I free to cash them?



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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes you should report it as it would be fraud on the courts if you do not.
Answer Applies to: New York
Replied: 1/15/2014
David R. Fondren, Attorney at Law
David R. Fondren, Attorney at Law | David R. Fondren
Do not spend the money. It is not yours. You could end up losing your discharge over this. Your attorney should have told you this. If you have not talked to your attorney, do so. There are options you have regarding the trustee.
Answer Applies to: Missouri
Replied: 1/10/2014
Kirby G. Moss PC | Kirby G. Moss
If you became entitled to the inheritance within 6 mo of filing the Bankruptcy, then you are obligated to turn them over to the Trustee. Failure to do so could result in Trustee seeking to revoke your discharge and still recovering the bonds.
Answer Applies to: Indiana
Replied: 1/7/2014
Danville Law Group | Scott Jordan
You should contact your attorney and discuss this with him or her.
Answer Applies to: California
Replied: 1/7/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need to take the advice of your attorney. They were an existing asset when you filed and belong to the trustee. Cashing them could subject you to criminal penalties.
Answer Applies to: California
Replied: 1/7/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    You should be speaking with your attorney on whether you can cash them or not. When you say "report them to the Court", this is something that your attorney will do. You didn't indicate how much the savings bonds were worth, but if they were a relatively small amount, then the Trustee likely wouldn't care too much, but probably appreciated the fact that your attorney notified him about the bonds, at any rate. I am also not sure if your attorney filed Amended Schedules B and C, which are the bankruptcy schedules (papers) filed with the Court that disclose your personal property, and also list the exemptions that you are using to protect your property. A lot of times, the attorney will speak with the Trustee and they will agree that there is no need to file these Amended Schedules due to the fact that the asset in question is not particularly significant. In that case, you're fine and feel to cash them, but I simply don't know enough facts to know this or not.
    Answer Applies to: Pennsylvania
    Replied: 1/7/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Of course you must report this money to the bankruptcy trustee unless the trustee abandoned this asset. Do not spend the money without permission from the trustee because to do so would be a theft offense.
    Answer Applies to: Nevada
    Replied: 1/7/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Call your lawyer and ask him or her what you should do.
    Answer Applies to: Colorado
    Replied: 1/7/2014
    Hayward, Parker, O'Leary & Pinsky, Esqs.
    Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
    The funds are property of the bankruptcy estate and must be turned over to the Trustee.
    Answer Applies to: New York
    Replied: 1/7/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    You have an attorney. You acted properly in advising your attorney and he acted properly in passing that on to the trustee. If I were you I'd contact your attorney again and follow his/her advice regarding this.
    Answer Applies to: Utah
    Replied: 1/7/2014
    Scott Goldstein | Scott Goldstein
    You need to report these things. They are part of the estate and using them for yourselves, without getting permission could result in the revocation of your discharge.
    Answer Applies to: New Jersey
    Replied: 1/7/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    If they were listed as assets with a known amount and then exempted from the BK estate, you are free to cash them. If they exceed the amount listed to the point they are no longer exempt and you received them within 180 days of the filing, they are the property of the trustee.
    Answer Applies to: California
    Replied: 1/7/2014
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    If you receive any funds from inheritance 6 months after the case was filed, you are required to advise your attorney and the Chapter 7 trustee.
    Answer Applies to: Georgia
    Replied: 1/7/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    You need to get with your attorney and trustee about this.
    Answer Applies to: South Carolina
    Replied: 1/7/2014
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