QUESTION
If we receive money from an insurance policy while in Chapter 13, do we have to report it to the trustee?
Asked on Nov 04th, 2014 on Bankruptcy - New York
More details to this question:
A parent dies and we receive money as the beneficiary of an insurance policy while we are in a Chapter 13.
6 ANSWERS
That would be a yes.
Answered on Aug 31st, 2015 at 8:45 PM
bankruptcy Attorney serving Paul, ID
at
Paul N. J. Ross Law, PLLC
Update Your Profile
Disclose, disclose, disclose is the mantra in bankruptcy. Always report it to the Trustee. I would do that through an amendment/supplement to Sch B and C with the information. Idaho has an exemption under many circumstances and in Idaho this would likely be exempt.
Answered on Nov 05th, 2014 at 7:35 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
Yes. Inheritances and life insurance proceeds must be reported to the trustee in a Chapter 13. Your attorney should have talked to you about the possibility of receiving an inheritance or life insurance and whether to set up a trust to avoid losing the money to your creditors.
Answered on Nov 05th, 2014 at 2:51 PM
Bankruptcy law requires you to make full disclosure of your financial circumstances as long as your case remains open. Of course you must report this money to the bankruptcy trustee.
Answered on Nov 05th, 2014 at 12:40 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
In New Jersey, you absolutely do have to report it, but your counsel may be able to amended your Schedule C Exemptions to keep most of it.
Answered on Nov 05th, 2014 at 8:11 AM
Yes the trustee needs to know everything.
Answered on Nov 05th, 2014 at 8:03 AM