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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My father passed away on Feb. 19. There is a trust. My husband

Resolved Question:

My father passed away on Feb. 19. There is a trust. My husband and I are filing bankruptcy. There is a protection clause, similar to a spendthrift clause in the trust. Does this protect our portion of the trust from the bankruptcy? Would it make a difference if we file a 7 vs. a 13? We are in California. Thanks,
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
Spendthrift trusts are not included in a Bankruptcy estate, and are therefore protected. [Bank. Statute 541(c)(2)]
This applies to both Chapter 7 and Chapter 13 Bankruptcies.

Edited by Christina Fortunato, Esq. on 7/2/2010 at 12:22 AM EST
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