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  1. #1
    Join Date
    Jun 2007
    Posts
    3

    Unhappy Inheritance And Chapter 13

    Hello,

    I have a question from California. My wife and I are in a Chapter 13 plan (confirmed 12/05). I am in the process of receiving a fairly large inheritance from my father. Under the circumstances, will all that have to go into the bankruptcy estate and serve as the basis for the Trustee requiring 100% pay back instead of the 33% which is currently in my plan? Is there any way for me to shelter the inheritance (or any parts of it) from ending up in the pockets of the unsecured creditors?

    When it rains, it pours!

    Thanks for any info. (I will seeing your attorney in several weeks -but am hoping for some general info. ahead of time).

    Dirik

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Inheritance And Chapter 13

    I believe any inheritance left to you by someone who dies before or within 180 after you file for bankruptcy becomes property of the estate. Otherwise, it's yours. However, I think the bk trustee should be informed of the inheritance.

  3. #3
    Join Date
    Jun 2007
    Posts
    3

    Red face Re: Inheritance And Chapter 13

    Betty,
    Thanks for the info. After doing some looking around, it appears to me that the 180 day rule applies primarily to Chapter 7. From what I'm seeing, it looks like the Trustee can ask for a modification of a Chapter 13 plan at any point - and this looks like something that would trigger such a request. At any rate, I am mentally preparing myself to give all the inheritance away in a 100% payout...and, looking on the bright side, at least the plan could be discharged! I will be meeting with our attorney within about a week to go over this from their perspective. If I get good news...then great...if not, then I suppose that would be God's way of telling me that he didn't want me to have it!

    Best,

    Dirik

    PS : The root of all evil isn't money...it's how people misuse it!

  4. #4
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Inheritance And Chapter 13

    Since you indicate it is a fairly large inheritance, your chapter 13 bk probably will be modified to pay a larger % to your unsecured creditors' claims than you are currently paying.

  5. #5
    Join Date
    Jun 2007
    Posts
    3

    Smile Re: Inheritance And Chapter 13

    "JK" :

    Wow...interesting and constructive comments. Thanks for that. I am merely attempting to get an idea as to what my legal obligations are under Chapter 13 and to find out what, if any, legal options I might have with regard to the changes in my bankruptcy estate...before my scheduled appointment with my bankruptcy attorney. I'm certain you are speaking for God with your moral judgement on me and my little question. It is always nice to hear from someone who deigns to come down from heaven and give us the benefit of their blameless life and perfect behavior - a small suggestion to you - spend a little more time reading the bible and what it indicates are our responsibilities as Christians - perhaps your moral judgements would be a little less harsh and carry a bit more credibility. Oh, by the way : I was estranged from my father for the best few years...as a result of a miserable and painful chaildhood with which I am still trying to deal...I learned he was in a nursing home about 10 days ago, went to visit him, reconciled as best I could, held his hand, wiped his (and my tears), fed him, and watched him struggle to apologize...he died four days ago...I am now planning a funeral, dealing with his estate...trying to factor that into my Chapter 13 plan...and attempting to deal with everyday life at the same time...all while working on about 3 hours of sleep a night. I would assume that you meant to include condolences in your response and merely forgot. So, I will thank you in advance and wish you God's peace.

    Dirik Lolkus

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Inheritance And Chapter 13

    Quote Quoting Dutchman
    View Post
    "JK" I would assume that you meant to include condolences in your response and merely forgot. So, I will thank you in advance and wish you God's peace.

    Dirik Lolkus
    believe or not, I was actually going to include such a statement but I thought it would come across as BS so I didn't bother.

    that still does not change my thoughts on you making an attempt to avoid paying the debts you incurred. Regardless what you went through in life, you made your debts, you should pay your debts.

    If you want to go religious; maybe this is Gods was of helping you to pay those debts that you should be paying. Thank Him for that and pay those debts. If you are as religious as you want to make others believe, then live by Jesus' statement; Render unto Caesar the things that are Caesar's.

    Living by that statement, you should render unto your creditors the things that are theirs.

    God bless and be well.

    oh, BTW, your legal obligations are to alert the trustee to the inheritance and allow them to do with it what is proper, which is, more than likely, use it to pay your creditors. Hopefully you will end up with enough for a very nice dinner out of the deal.

    Your heart will be lifted from the weight it now suffers as you fulfill your word to repay your creditors.

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