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  1. #1
    Join Date
    Aug 2008
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    2

    Exclamation Possible Inheritance With Pending Discharge in Bankruptcy

    My question involves bankruptcy in the state of: Virginia

    Hello,

    We had our MOC this past June, that seemed to go well (?), and just last month, my grandmother suddenly passed away. Her will left gifts to her grandchildren and great-grandchildren by name. I've informed my attorney's office, who in turn will be notifying the trustee in our case of the possible "inheritance". I'm assuming I'll have to hand over cash to them?

    My oldest daughter would also be due money that in the will, which states my responsibility being to invest in a 529 for her education. Will the trustee be due that cash also?

    What if my grandmother's estate doesn't have enough money left (after her final debts are settled and her children get their shares) and I receive a lesser amount and my daughter none at all? Do I still have to pay the trustee the amount that I should've been gifted from her estate had the stock markets not gone south?

    How long do we have to wait (my husband and I) before we can begin getting back on our feet, beginning to save, invest, purchase an old beater vehicle (both of ours are being taken back), etc.? Months? Years?? Ever???

    When Christmas rolls around, or birthdays, or just happy days, will gifts given to my children or myself need to be declared to the trustee? Do I need to hand over a $50 check from my recent birthday? If a family member helps out by paying a bill of ours, do I then owe that amount of the bill to the trustee?

    I am having a difficult time finding guidelines for all of this. I apologize if it is a bit overwhelming. My attorney is apparently a very busy man, and tends to give his clients information as he feels they need to know it. Is that normal?...

    Thank you in advance.

  2. #2
    Join Date
    Sep 2005
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    Posts
    98,846

    Default Re: Possible Inheritance With Pending Discharge in Bankruptcy

    Your inheritance goes to you. Your daughter's inheritance goes to her.

    If you receive an inheritance within six months of filing for bankruptcy, the inheritance must be applied to your debts. See 11 USC Sec. 541(a)(5).

    Given that you appear confused about the bankruptcy process, you should sit down and talk about your repayment plan with your bankruptcy lawyer.

  3. #3
    Join Date
    Aug 2008
    Posts
    2

    Unhappy Re: Possible Inheritance With Pending Discharge in Bankruptcy

    Quote Quoting Mr. Knowitall
    View Post
    Your inheritance goes to you. Your daughter's inheritance goes to her.

    If you receive an inheritance within six months of filing for bankruptcy, the inheritance must be applied to your debts. See 11 USC Sec. 541(a)(5).

    Given that you appear confused about the bankruptcy process, you should sit down and talk about your repayment plan with your bankruptcy lawyer.

    Thank you Mr. Knowitall. I try often to read for myself the laws, and get a bit dizzy. I really do appreciate your help. My stomach has settled a bit knowing gifts to my kiddos won't be thrown away on my mistakes. I appreciate the time you took to answer very, very much.

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