After your Chapter 13 Bankruptcy discharge all debts that have been included in your payment plan will be discharged after the final hearing in court whereby the judge will approve and discharge your plan.
However, understand that the debts that are not dischargeable such as alimony, student loans, back taxes will not be included so be aware that those debts will still be owed.
After receipt of the money, the discharged creditors will not have any right to the money (i.e. cash gift received). But you must wait until the discharge is approved by the judge.
I hope this helps.
Please remember to rate my answer. I will gladly continue our discussion until you have gotten the information you need.
If you need further help, just reply to me via the “REPLY” or “CONTINUE CONVERSATION” button.
Please keep in mind that I am trying to help you understand and resolve your situation. I don't make the laws, I am just reporting or interpreting them, so the outcome may not be what you had hoped for.
Please be patient as I am typically working with several customers at any given time. Some answers take 5 minutes, some 35 minutes. But rest assured, I will get back to you.
I am not entering into an attorney client relationship, this is a public forum, and all posts
are available for public viewing. There is no duty of confidentiality that attaches to any posts. With that in mind, do not post any specific information you do not want available for public viewing. The information provided is not a substitute for a local attorney’s legal advice.
Information given is not legal advice. I am not your attorney. The information given is general only. I am not establishing or accepting an attorney-client relationship with you. All posts are available for public viewing.
No, I would not accept the cash gift before the discharge as stated in my previous answer as it will cause concern for the BK judge and will not approve your BK discharge.
After the dishcarge you are free to do whatever you want i.e. accept the cash gift without the trustee breathing down your neck.
I am unaware of any specific law that allows a trustee to come after any assets after a bankruptcy is discharged relative to the dischargeable debts that were included in your BK plan.
Now, if you want to accept a cash gift six months before your bankruptcy is discharged taking that unecessary risk while the trustee still has jurisdiction over your estate go ahead. But again, If I coudl go 4 1/2 years through the plan without the 200k, I would be able to last another six months for assurance.
Additionally, if you are so concerned with the trustee after discharge, place the money in a qualified retirement account that is exempt from creditors and your assets will be protected.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).