Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Cash gifts that a debtor receives after a Bankruptcy is filed do not become part of the Bankruptcy estate.
2) If the lottery ticket was purchased before the Bankruptcy was filed, the winnings become part of the Bankruptcy estate. If the ticket was purchased after the Bankruptcy was filed, the winnings do not become part of the Bankruptcy estate.
3) An inheritance that the debtor becomes entitled to within 90 days after the filing becomes the property of the Bankruptcy estate. "Becomes entitled to" means the date the deceased died. If the death occurs more than 90 days after the Bankruptcy is filed, that inheritance does not become part of the Bankruptcy estate.
I think this is what you wanted to know. If not, please let me know.Thank you!
About the inheritance, you did not fully answer my question. I asked you, if you found out you were entitled to an inheritance YOU DID NOT KNOW ABOUT after the bankruptcy was completed? In other words, your bankruptcy was all completed, done and over with and then you receive a call or a letter from someone saying you inherited some money. Does the same rules apply even if you did NOT KNOW about the inheritance until after the bankruptcy was completed.
Yes - the same rules apply even if the debtor did not know about the inheritance until after the Bankruptcy is filed and closed. If the person from whom the debtor will receive the inheritance died at any time before 90 days after the Bankruptcy was filed, the inheritance becomes part of the Bankrutpcy estate.
How would the creditors find out about the inheritance?
Are any of the creditors family members or friends?
If there none of the creditors are family members or friends, it is unlikely that the creditors will find out about the inheritance - especially if it is not in his name.
Additionally, there is no obligation on the debtor's part to inform the Bankruptcy court about it. This is because at the time of filing the debtor did not know about the inheritance, so could not report it.
The same rules apply to the inheritance regardless of when the debtor finds out about it. There is no duty on the part of the debtor to inform the Bankrutpcy court about the inheritance after the trustee meeting (about one month after filing). This rule remains the same regardless of when the debtor finds out about the inheritance.
Creditors cannot garnish his wages at any time because of his inheritance.
No - there is no specific time frame he needs to wait before accepting the money.
Just did some additional research. A debtor is supposed to inform the trustee about money or an asset that is obtained after a Bankrutpcy is filed, if that money or asset would have been part of the Bankrutpcy estate if the debtor had the money at the time the Bankrutpcy was filed. Bankruptcy Stat. 727(d)(2).