If you are in chapter 13 for 3 ½ years and receive an inheritance, can the trustee take it? 9 Answers as of January 31, 2016

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Yes. Which is why your lawyer should try to negotiate a discount very soon.
Answer Applies to: Wisconsin
Replied: 1/31/2016
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I think not because it came more than 180 days after the filing, however there could be something funky in your order of confirmation, so check it.
Answer Applies to: California
Replied: 1/29/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
When you receive the inheritance is not important. What is important is WHEN the person died. If before the bankruptcy was filed, then the inheritance should have been disclosed on the schedules. If exempt, no problem. If the person died more than 6 months after the bankruptcy was filed or after confirmation, again no problem. But the devil is in the details that are not provided.
Answer Applies to: Nevada
Replied: 1/29/2016
Ronald K. Nims LLC | Ronald K. Nims
Yes, the trustee can take some or all of it. If it's more money than needed to pay off all your creditors at 100%, the trustee can't take more than needed to pay them off. Your attorney should have questioned you about a possible inheritance before you filed the Chapter 13. And advised you that your benefactor should change his/her estate plan so you would not receive anything until after the completion of the plan. If your attorney didn't, you've got a malpractice claim which could recover any funds you lost because of his/her negligence.
Answer Applies to: Ohio
Replied: 1/29/2016
Garner Law Office
Garner Law Office | Daniel Garner
Yes, you have to decide whether it makes more sense to turn it over to the trustee and stay in your plan or drop out of the chapter 13 and try to settle your debts with your inheritance.
Answer Applies to: Oregon
Replied: 1/29/2016
    Stephens Gourley & Bywater | David A. Stephens
    Generally, yes, although depending on the length of your plan and the percentage paid to unsecured creditors, you may be able to stop it.
    Answer Applies to: Nevada
    Replied: 1/29/2016
    The Salas Firm
    The Salas Firm | Ron Salas
    It is very possible. I believe you have an obligation to disclose the inheritance and you should probably contact an attorney.
    Answer Applies to: Colorado
    Replied: 1/29/2016
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Generally yes, it is a source of money to pay the creditors. See or get a bankruptcy attorney. You may have some options you want to consider.
    Answer Applies to: Michigan
    Replied: 1/29/2016
    Scott Goldstein | Scott Goldstein
    Yes. That belongs to the estate.
    Answer Applies to: New Jersey
    Replied: 1/29/2016
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