What will happen to our trust if we file for bankruptcy? How?

Quite often, the Trustee in a Ch. 13 is interested only in the income which reaches you from the Trust, not your ownership interest in the Trust itself. She or he will no doubt want to see the trust document. Consult an experienced BR lawyer in your area. It's almost always worth the investment.

One of the things they teach in law school is never to render an opinion on a document that you haven't read. I can't speak to his parents' trust directly but in general trusts are written so that they are controlled by the parents, as long as the parents are alive. Trusts of this type would have no affect on your bankruptcy because they are assets that you might get in the future not assets that you own now. A Chapter 13 plan lasts 3 to 5 years, during that time, his parents might die. If he inherits the trust funds while still in the Chapter 13, the money would go to paying off his creditors. To avoid this, his parents need to amend the trust so that he won't receive any assets until after the Chapter 13 is completed.

Nothing will happen to the trust. However if you receive an inheritance within 180 days of the BK filing, your shares of the trust must be handed over to the trustee.

When you file bankruptcy, the terms of the trust will be examined by the Chapter 13 trustee. So, your answer depends upon how the trust was set up, who are the trustees, and when distributions are required to the beneficiaries. Thus, I would recommend that you contact the attorney that set up the trust for your parents and discuss with him the likely outcome, if you file a Chapter 13 bankruptcy.

What will happen depends on the terms of the trust. Although you did not expressly say so, I am assuming that the trust was created and funded by your husband's parents. Hopefully, it was created by a capable attorney who included a spendthrift provision in the trust using magic words to protect the trust from creditors. You also did not indicate whether this trust is paying out money or making other distributions to your husband. In the best case scenario, the trust will be fully protected. There might be a problem with any inheritance, whether or not in trust, if either of your parents dies less than 6 months after you file a bankruptcy.

Need the details, but generally an expectancy is not an asset in bankruptcy. However, if it comes to pass during the bankruptcy it is probable it word go to the creditors. Confer with an attorney.

None of those bad things will happen. Just pray they live long enough to survive your chapter 13.