QUESTION
I stand to inherit from my parent’s estate. Will this affect my Ch. 13?
Asked on Apr 26th, 2012 on Bankruptcy - New York
More details to this question:
I stand to inherit from my parent’s estate. Will this affect my Ch. 13? Could we pay off our remaining 2 years of our Ch. 13 early?
11 ANSWERS
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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Consult with the attorney who filed the bankruptcy for you. It should not affect the 13 and you may be able to do as you suggest but that depends upon a number of factors known only to your attorney at this time.
Answered on May 11th, 2012 at 12:29 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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Bereliani Law Firm, PC
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Yes BUT please consult an attorney if that is the best option for your or what the best option is. The inheritance should get reported to the court when it arrives, but there are different options you need to consider at this point prior to the inheritance. I would need to see your chapter 13 plan that was filed and get more information about your case to further analyze, but yes you do need to see an attorney.
Answered on May 09th, 2012 at 1:05 PM
Chapter 13 Trustees require that you file an annual update during the life of your Plan. If your income goes way up or you pick up a bunch of property free and clear, it would need be reported. If you are in a 100% Plan, you can pay it off early. If you are not in a 100%, the Trustee may require you to pay in a minimum of 36 months or 60 months, based on whether your income is over the CMI test or not.
Answered on May 09th, 2012 at 1:03 PM
Adoptions Attorney serving Middletown, RI
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Joseph F. Hook Attorney at Law
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If you are in a chapter 13, the inheritence to the extent that it is not subject to any exemption, has to be accounted for in your chapter 13 plan. You will either have to turn the inheritence over to the trustee to the extent necessarry to pay the claims of creditors, or amend your plan so that the creditors receive as much as they would have, had you turned the non exempt portion of the inhereitence over. You can pay-off your plan early. However, you must account for the inheritence, and likely will have to pay more than the plan prior to the inheritence provided for.
Answered on May 09th, 2012 at 12:40 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Upon confirmation of your plan your property vests in you. You income is still part of the estate. If you want to pay off your bankruptcy sooner than three years you need to pay your unsecured creditors in full, even if your plan provided for only partial payment. After three years you can ask for a payoff from the trustee.
Answered on May 09th, 2012 at 12:31 PM
Family Law Attorney serving North Kingstown, RI
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Law Offices of Nelson Brinckerhoff
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Yes if death within 6 months of filing.
Answered on May 09th, 2012 at 12:19 PM
Receiving an inheritance may affect your bankruptcy. For example, if you had knowledge that you had the possibility of receiving an inheritance at the time you filed, the Trustee (or any creditor) can claim fraud and seek to dismiss your case or seize the inheritance. Even if you had no knowledge that you may receive something on the day you filed, it is possible for the Trustee (or creditors) to demand that some or all of the money be used to pay your bills. I recommend that you discuss this issue with your attorney very soon.
Answered on May 09th, 2012 at 12:01 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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When you receive a windfall during bankruptcy, such as an inheritance, you must inform your attorney and the trustee of the windfall. The inheritance may increase your ability to pay such that you may be required to make higher payments since you have more funds available.
Answered on May 09th, 2012 at 11:51 AM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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It will have a dramatic effect on your bankruptcy. Whether you can pay off the plan a 2 years early is another question and one that is unclear under current law. If possible, have your parents do a codicil to the will to put the money in trust. You really need to discuss this with your attorney, NOW.
Answered on May 09th, 2012 at 11:51 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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This may be a difficult question. There is a good argument that if your parent died more than 180 days after you filed bankruptcy then the property is yours and you do not have to pay extra. I discussed this on a recent post in my blog. But you need to consult with your attorney and this may depend on your local trustee and judge.
Answered on May 09th, 2012 at 11:50 AM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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The inheritance is property of the Chapter 13 estate. You may use the funds (must use) to pay off creditors unless the Trustee or the Court determine that some or all of the proceeds are exempt. There are few reasons why the inheritance would be exempt and all of it is usually treated as disposable income that must be paid into the Plan. There are exceptions like inherited IRA's.
Answered on May 09th, 2012 at 11:48 AM