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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Good morning. We are currently (about 10 months) in a chapter

Customer Question

Good morning. We are currently (about 10 months) in a chapter 13 bankruptsy. My father in law recently passed away & has left us an inheritance of around 16K. In a chapter 13, will we have to turn it all over to the Trustee? We prefer to put this into a savings for our 2 children. Is there any way around this?
Thank you.
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

cfortunato :

Hi - my name is Chris and I'm a Bankruptcy attorney here to assist you.

cfortunato :

An inheritance received while a Bankruptcy is in progress is a non-exempt asset. Whether or not the entire amount would have to be turned over to the Bankruptcy trustee depends on the total value of your other non-exempt assets, and also on the total amount of your Chapter 13 plan payments.

cfortunato :

If the total amount of your Chapter 13 payments over the entire plan period is greater than the $16K inheritance and the total value of your other non-exempt assets, then you can keep the $16K.