QUESTION
Does inheritance have to be disclosed in filing for bankruptcy being that I technically inherited this a year ago?
Asked on Sep 10th, 2012 on Bankruptcy - Florida
More details to this question:
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.
19 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on May 28th, 2013 at 8:25 PM
Banking Attorney serving Miami, FL
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The Barrister Firm, P.A.
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Yes because it is an asset.
Answered on May 28th, 2013 at 8:24 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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Yes, it is an asset and must be disclosed.
Answered on May 28th, 2013 at 8:17 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes.
Answered on May 22nd, 2013 at 2:59 AM
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.
Answered on Sep 14th, 2012 at 1:34 AM
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.)
Answered on Sep 14th, 2012 at 1:34 AM
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.
Answered on Sep 14th, 2012 at 1:32 AM
It does not matter that he died before your bankruptcy was filed. Non exempt assets are part of the bankruptcy estate.
Answered on Sep 14th, 2012 at 1:32 AM
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.
Answered on Sep 14th, 2012 at 1:30 AM
Yes, inheritances need to be disclosed in bankruptcy.
Answered on Sep 14th, 2012 at 1:30 AM
Probate and Estate Planning Attorney serving Harrison, MI
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David T. McAndrew, Attorney at Law
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Yes. The inheritance (or its cash value) is an asset that the trustee will want to assign to your debtors to pay off some of your debt. Failure to report it during the bankruptcy process could subject you to severe civil and criminal penalties.
Answered on Sep 14th, 2012 at 1:30 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes, you are supposed to disclose everything.
Answered on Sep 14th, 2012 at 1:29 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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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.
Answered on Sep 14th, 2012 at 1:28 AM
Barbara A. Fontaine
Put it in. It most likely will not make any difference in what happens.
Answered on Sep 13th, 2012 at 11:31 AM
Bankruptcy Chapter 7 Attorney serving Fort Collins, CO
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The Salas Law Firm LLC
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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.
Answered on Sep 13th, 2012 at 11:31 AM
Bankruptcy Attorney serving Myrtle Beach, SC
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Law Office of Margaret L. Evans, PC
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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.
Answered on Sep 13th, 2012 at 11:30 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You have to make full disclosure in bankruptcy, including the inheritance and its status.
Answered on Sep 13th, 2012 at 11:29 AM
Daniel James 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.
Answered on Sep 13th, 2012 at 11:29 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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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.
Answered on Sep 13th, 2012 at 11:28 AM