Inheritance

That depends on which chapter of bankruptcy you file, and when you become entitled to receive the inheritance. If that party leaving you the money in their will dies within 180 days after your bankruptcy case is filed, then the inheritance is considered property of your bankruptcy estate and, to the extent you do not have exemptions to protect it, you could lose it in a Chapter 7 case.  In a Chapter 13 or Chapter 11 case, you would have to pay out at least the amount of the non-exempt portion of the inheritance to your creditors through your plan. Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections.  Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.  Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.