Does inheritance have to be disclosed in filing for bankruptcy being that I technically inherited this a year ago? 31 Answers as of May 28, 2013

My Dad died over a year ago. His home was left to my two siblings and I. It is worth very little and we have not been able to sell it. I recently filed bankruptcy and now we received an offer on the house of $40,000. After paying past due taxes, HOA fees and other bills, we might each walk away with $10,000.

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Philip R. Boardman, Attorney at Law
Philip R. Boardman, Attorney at Law | Phil Boardman
Yes.
Answer Applies to: Virginia
Replied: 5/22/2013
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Absolutely. You are required to list any assets you have on the date you bankruptcy case was filed. If your father died over a year prior to you filing your bankruptcy case, then you were required to list the possibility of an inheritance on your bankruptcy papers. Failure to do so could be considered grounds for denial of your discharge. You may or may not be able to exempt (protect) your interest in the inheritance. That depends on what exemptions you have available as well as the values of your other assets. Your attorney can assist you with this. If you for some reason don't have an attorney, get one.
Answer Applies to: California
Replied: 9/14/2012
Law Office of Norman Moore
Law Office of Norman Moore | Norman P Moore Jr
That is a hard question to answer without knowing exactly when you filed your bankruptcy, when your father died and how soon you will receive the money. If you have not had your 341 hearing yet, the Trustee will probably ask you about inheritance and then give you a date that, should you receive one prior to it, you would have to report it. In any event, you should have disclosed your 1/3 interest in the home.
Answer Applies to: Wisconsin
Replied: 9/14/2012
Law Offices of Craig A Dahlquist Jr | Craig A Dahlquist Jr
When you file for bankruptcy your assets become part of the bankruptcy estate. This trust has the sole authority to administer assets of the estate. Not only must you disclose the sale but you need the Trustees permission to sell your interest. Simply asking permission assumes that you listed the house on your Schedule A and exempted your interest on the Schedule C. For most people they have an additional $10,000 in exemptions for Real Property, as very few have enough equity to take full advantage of California's generous exception laws. If you did not list the house on your schedules that would be a real problem for your bankruptcy. It would be grounds to have your case dismissed or given sections for hiding assets. The most likely case if they (the trustee or the court) find out before you disclose is the trustee could object to any amendments to your exceptions you attempt to make. This would give him/her the power to take all of the proceeds, distribute them to creditors and take their cut. If you listed the house and have exemptions, then it is only a matter of letting the trustee know and gettng their permission. If there are no nonexempt assets expected from the sale, the estate has very little interested in what happens and their should be no problem whatsoever. If it has not been listed you need to amend your Schedules A and C as soon as possible. (And maybe your Statement of Financial Affairs.)
Answer Applies to: California
Replied: 9/14/2012
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
It does not matter that he died before your bankruptcy was filed. Non exempt assets are part of the bankruptcy estate.
Answer Applies to: Indiana
Replied: 9/14/2012
    Steven Alpers | Steven Alpers
    Yes, it is an asset and must be disclosed.
    Answer Applies to: California
    Replied: 5/28/2013
    The Bankruptcy Center | Meredith P. Ezzell
    Yes, you are required to list all of your assets on a bankruptcy petition. This inheritance was received before you filed bankruptcy and should be listed on your schedule of assets. You need to contact your attorney about this as soon as possible.
    Answer Applies to: North Carolina
    Replied: 9/14/2012
    The Barrister Firm
    The Barrister Firm | Christopher Benjamin
    Yes because it is an asset.
    Answer Applies to: Florida
    Replied: 5/28/2013
    The Law Offices of Katie M. Stone
    The Law Offices of Katie M. Stone | Katie M. Stone
    Yes, you need to disclose this inheritance to your bankruptcy trustee. Any un-exempt portion will most likely have to be handed over to the trustee to be distributed among your creditors. Although probably not the answer you wanted to hear, a good way to think of it is that it cost you the amount of your inheritance to have your total debt discharged. It is probably a deal depending on how much debt you have. I hope you found this answer useful.
    Answer Applies to: Florida
    Replied: 9/17/2012
    LAW OFFICE OF JASMINE OHANIAN | JASMINE OHANIAN
    Once you file for bankrtupcy, all your assets should be listed. Since you had the property at the time of filing bankruptcy, it should have been listed as your asset and disclosed. Otherwise, your case can be reopened.
    Answer Applies to: California
    Replied: 9/14/2012
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    Yes, inheritances need to be disclosed in bankruptcy.
    Answer Applies to: California
    Replied: 9/14/2012
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes.
    Answer Applies to: Michigan
    Replied: 5/28/2013
    Law Office of D.L. Drain, P.A.
    Law Office of D.L. Drain, P.A. | Diane L. Drain
    You are required by law to disclose all inheritances as part of your bankruptcy. This includes any right to inherit before you file the bankruptcy, or 6 months after you filed. It does not matter if you have not actually received the inheritance. It is bankruptcy fraud not to fully disclose.
    Answer Applies to: Arizona
    Replied: 9/14/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes, his estate is still opened and you are going to receive money from it, so it has to be reported. You should talk to a bankruptcy attorney because there may be a way to exempt all of it or part, depending on what other assets you have. Good luck!
    Answer Applies to: Michigan
    Replied: 9/17/2012
    The Salas Firm
    The Salas Firm | Ron Salas
    Yes, all assets must be disclosed no matter how large or small they are. If they are not disclosed you open yourself up to a Federal perjury charge.
    Answer Applies to: Colorado
    Replied: 9/13/2012
    Barbara Fontaine, Esquire | Barbara Fontaine
    Put it in. It most likely will not make any difference in what happens.
    Answer Applies to: Rhode Island
    Replied: 9/13/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    You listed the property in the bankruptcy schedules, right? If you did not, you could face charges for fraud and the bankruptcy case can be dismissed.
    Answer Applies to: Florida
    Replied: 9/13/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You are required to list all assets you own in a bankruptcy petition.
    Answer Applies to: California
    Replied: 9/13/2012
    LAW OFFICE OF MARGARET L. EVANS, PC
    LAW OFFICE OF MARGARET L. EVANS, PC | Margaret L. Evans
    Yes, absolutely; bankruptcy fraud crimes are vigorously prosecuted. The appropriate schedules and/or statements should be amended to reflect that inheritance in the event that it was not on the original documentation.
    Answer Applies to: South Carolina
    Replied: 9/13/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Yes, because it is an asset of yours, regardless of whether it is through an inheritance. If you do not disclose it you are committing fraud. However, if there is little equity, you may be exempt and not have to pay anything anyway so you should discuss with your attorney the details of your case.
    Answer Applies to: New York
    Replied: 9/13/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    You have to make full disclosure in bankruptcy, including the inheritance and its status.
    Answer Applies to: Michigan
    Replied: 9/13/2012
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    This is an asset that must be scheduled. All assets and debts must be disclosed. You need an attorney to do some pre-filing planning.
    Answer Applies to: Colorado
    Replied: 9/13/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    You should have disclosed this in the bankruptcy when it was filed and must amend to include you interest in the house, regardless of what you think it is worth. Failure to do so is perjury and can result in fines, prison and a denial of your discharge, or any of them.
    Answer Applies to: California
    Replied: 9/13/2012
    Bjork Law Office
    Bjork Law Office | Attorney John P. Bjork
    Yes. All your assets and interests must be disclosed. If you don't disclose it, you can get into big trouble.
    Answer Applies to: Wisconsin
    Replied: 9/13/2012
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Yes an inheritance that you were entitled to at the time of filing bankruptcy is property of your estate and must be disclosed. You should amend schedule B to include this.
    Answer Applies to: Utah
    Replied: 11/9/2012
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