How much of my wife’s inheritance will they take in my bankruptcy?

The trustee will take the entire inheritance or the amount required to pay off the unsecured creditors 100%. It doesn't matter which spouse ran up the debts, since you filed a joint bankruptcy; each spouse is equally responsible.? Inherited funds are part of the bankruptcy as of the date when your wife had the right to receive them (the date of her mother's death) not the date when she receives the funds. Your bankruptcy attorney should have spoken to you about inheritances and, upon finding out about your wife's situation, should have recommended that her mother establish a trust which would defer your wife's share until after the bankruptcy is over. If your bankruptcy attorney didn't cover this important item, they've committed malpractice and your wife may be able to recover some or all the funds she'll lose to the bankruptcy from the lawyer.

You haven't said whether your wife has, or has not, filed jointly with you. If she has not filed jointly with you, and you live in a community or marital property state like Wisconsin, the inheritance is her separate property (unless you have a marital property agreement stating otherwise), and the bankruptcy court has nothing to do with it. Assuming she has filed jointly with you, then I think you must notify the Ch. 13 Trustee about the inheritance. Putting off the payout date will not make any difference, since she is entitled to the inheritance now. Please keep in mind that you can try to exempt some part of the inheritance if you must declare it. I also strongly suggest you locate an experienced bankruptcy lawyer in your area, and consult him or her. It's almost always worth the investment, especially when the issue involves a fairly large amount of money.

The bankruptcy trustee has the right to take all of it until your unsecured creditors are paid their entire claims, 100% not what you proposed to pay them. The insurance company can delay payment all it wants, the thing that matters is when the right to the money was acquired so technically the case can be held open until the money is received. In fact, the trustee, if he wanted, could get a court order to have the money distributed properly instead of this one year wait. If $13,000 pays all creditors 100% of their allowed claims, the trustee will only take enough to pay all allowed claims plus the trustee commissions. If $13,000 is only what is needed to pay off your plan and your plan pays less than 100% to unsecured creditors, the trustee will take all funds necessary to pay your unsecured creditors 100% plus trustee commissions. You need to address this with your bankruptcy attorney to make sure this is done properly and to protect as money as possible, if you eventually are allowed to keep any of it.

Being in bankruptcy is a choice, and it is a choice your Wife made along with you. You can always drop out of a Chapter 13 if you decide you cannot live with the requirements of the Chapter 13. Unless you are paying 100% of all claims filed in your Chapter 13 case, it is possible that the bankruptcy trustee will be entitled to take every penny your Wife inherits to pay off the debts up to the point where all your debt is paid. There may be strategies to resolve this issue, but the devil will be in the details, so consult with your attorney and get a second opinion.