Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) What is the total amount of your unsecured debt?
2) You said you might inherit "$34,000 per year". For how many years is that?
If you do become entitled to the inheritance while the Chapter 13 Bankrutpcy is still in progress (before the end of the 60 months), the Bankruptcy trustee can take enough money from your inheritance to pay in full the unsecured debts only - the school loan, property taxes, hospital bills, and credit card debts. The rest of the inheritance would belong to you.
If you become entitled to the inheritance after the Chapter 13 is completed (after the 60 months), the Bankruptcy court would get none of your inheritance.
I think this is what you wanted to know. If not, please let me know.Thank you!
A Chapter 7 debtor must inform the Bankruptcy court of the entitlement to an inheritance within 6 months of filing the Bankruptcy. Bankruptcy Stat. 541(a)(5)(A).
A Chapter 13 debtor must inform the Bankrutpcy court of the entitlement to an inheritance within the 60 months of the Chapter 13 plan period. Bankruptcy Stat. 1306(a)(1).
It is possible your attorney does not know about the second statute.