Inheritance And Chapter 7 Discharge
My question involves bankruptcy in the state of: ohio
Can this property be seized by the trustee? Let me explain: I have a chapter 7 that was discharged in March 08. My brother is living in an old home that my grandfather built over 100 years ago. The home and property were owned by both my grandfather and grandmother. Both are deceased and left no will. My father was an only child so he inherited the home and property. My father never legally claimed the property. My father died very unexpectedly several years ago, he left no will. The property is actually still in my deceased grandparents names. My siblings and I have done nothing with the property bc it's just been too painful,(it's in a rural area) and we all lived in other states from where the property is located. Now, my brother has moved into the home with his wife and is asking me to sign papers to make the home legally ours and then finally his. If I sign paperwork to have the home and property legally mine and my siblings, can the BK trustee take over my share of interest in the property? What is the timeline on inheriting property after you've received a discharged Chapter 7?
Re: Inheritance And Chapter 7 Discharge
Any inheritance, property or life ins. benefits left to you by someone who dies before or within 180 days after you file for bankruptcy becomes property of the estate unless the asset is exempt.
You might want to run this by your bankruptcy attorney.
Re: Inheritance And Chapter 7 Discharge
Thanks Betty for your reply.
I don't want anything to do with the property. It's an old farmhouse and a few acres in a rural area. I'll never return to the property. I want to remember it as it was when everyone lived and thrived there.
Can't I refuse to take ownership of the property? Can't I request that I not be entitled to a share and give my share to my sibling? I've never considered the property to be mine or wanted it.
I hate to think I may jeopardize my brother's ability to live in and restore the 100 yr old home my Grandfather and Father built bc of my bankruptcy.:wallbang:
Any helpful responses are appreciated!
Re: Inheritance And Chapter 7 Discharge
You can sometimes renounce an inheritance (property) before you actually receive it so that it goes to other heirs & not the bk trustee. However, this is really something that should be brought up with you bankruptcy attorney.
Re: Inheritance And Chapter 7 Discharge
Thanks again, Betty.
I'll inform my BK atty. He's very arrogant and responds to my questions as if I am really intruding upon him. So I am weary to call him bc I just don't need to made to feel like an idiot or intrusion. BUT it seems as though I need to give him a call.
HOWEVER, are you aware if I can designate which sibling is to receive my interest in the property if I am able to "renounce" it? Does it even have to be my sibling, could it be my child?
Thanks again for any informative response!
Re: Inheritance And Chapter 7 Discharge
The problem with an inheritance is that you can't transfer it to someone else to keep it out of your bankruptcy estate if it should be included. That's why I recommend talking to your attorney to be sure you aren't doing anything wrong (a fraudulent transfer). You might be able to renounce taking it completely - I'm not sure about taking it & transferring it to your child. (To give it to your child might not be considered renouncing it completely if you decide who gets it) If you can renounce taking it, your share would normally go to the other heirs. Talk to your attorney.
Re: Inheritance And Chapter 7 Discharge
Thank you Betty. As much as I dread it, I'll call my arrogant attorney.:mad:
Re: Inheritance And Chapter 7 Discharge
You can disclaim but it has to be timely and properly filed with the court.
To properly transfer the property a probate will have to be opened for your grandparents and also your father. While you can disclaim you cannot designate. Your share will be distributed in accordance with the will or the law of the state.
Re: Inheritance And Chapter 7 Discharge
Thanks lwpat. I think I know what I need to do.
Re: Inheritance And Chapter 7 Discharge
I assume that your fraction of the house would not put you "over the top" on paying off the discharged amount of debt and leaving you some money left over? If it did, I'd definitely suggest rethinking your position, despite any good intentions of letting your brother have the house free and clear.
But even if the amount would be 100% peed away to your creditors who took the discharge hit, I don't think that refusing your share of the inheritance is a good idea. In fact it's almost out of the question... because at this late date, it is not yours to refuse: by law it belongs in your bankruptcy estate, even if you honestly didn't realize that until after discharge and/or after 180 days from filing.
Brotherly love is fine, but be careful not to both give him your fraction of the house's value, and possibly be liable for that same amount again yourself, and possibly face fraud/criminal charges in addition.
Not reporting it is bad enough an appearance, but at least if you play dumb, keep it in your grandparents' names and get caught, the equity is still there to be taken by the bankruptcy trustee when that happens. It's a strange enough situation that they'd probably just take the money, scold you, and be done with it.
But if you refuse the inheritance or sign away your part of the house to your brother in probate, it is not only a worse appearance and more active deception on your part, but your brother might have sold or mortgaged up the house by the time the trustee comes after it, leaving you holding the bag.
And the news gets only worse, because the most likely reasons he would want title to the house cleared up, is to do exactly one of those two things. Why else would someone want to change the status quo of living in a paid-off house as if they own the whole thing, when they actually own only a fraction?