How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
14232603
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

Concerning a Bank Ruptcy If you have already filed and a case

This answer was rated:

Concerning a Bank Ruptcy If you have already filed and a case nunber is assigned and a relative dies and leaves you an inheratince can it be protected or must it go to the trustee??
HiCustomer
If the relative dies within 180 days of filing the Bankruptcy, that inheritance does become part of the Bankruptcy estate. Bankruptcy Stat. 541(a)(5)(A) This means that unless it is protected by an available exemption, it does have to be turned over to the trustee.
Customer: replied 6 years ago.

3 questions What if relative dies 6 months before BR but inheritance wasnt known untill after BR was filed?

What is an available exemption?

If BR is finial before inheritance is awarded is it still 180 days from file date

1) If relative dies before Bankruptcy is filed, the inheritance is part of the Bankruptcy estate. It doesn't matter when the debtor finds out about it.
2) The same exemptions apply to the inheritance as apply to the rest of the debtor's assets.
3) Yes - even if the case is already closed, it gets re-opened if the inheritance occurs within 180 of the date of filing.
Customer: replied 6 years ago.
What if it goes unreported How would anyone ever know? I know its illegal not to report

Basically, the only way the Bankruptcy court would find out - if it was not reported - is if you have a creditor that is a friend or relative who knows about the inheritance, and that friend or relative notified the court.

(Please don't forget to hit the "ACCEPT" button.)

Thank you!



Edited by Christina Fortunato, Esq. on 8/7/2010 at 5:45 PM EST
cfortunato and other Bankruptcy Law Specialists are ready to help you