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 Dimitry K., Esq. Your Own Question
Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
18572087
Type Your Legal Question Here...
Dimitry K., Esq. is online now
A new question is answered every 9 seconds

We filed bankruptcy on Oct. 31, 2012. On Feb. 13, 2012 my

Resolved Question:

We filed bankruptcy on Oct. 31, 2012. On Feb. 13, 2012 my father in law died after suffering a stroke 3 weeks earlier. He had setup a trust which kept us from having to go thru probate and in it has a clause titled Protection from creditors. Our Bankruptcy attorney finally got back to us after several weeks and still isn't sure if my husbands inheritance is protected. He thinks its a valid spendthrift trust but hasn't ever come across this before. Having someone die withing the 6 months and leaving an inheritance. So do you know if a spendthrift trust would protect our inheritance?
Submitted: 4 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 4 years ago.
Thank you for your question.

Just to be clear, did you physically get the funds yourselves, or did it go into this trust?
Customer: replied 4 years ago.
in the trust but is going to be divided between 4 of them and disbursed. Unless we find out that the trustee, his brother, has to keep our share so that creditors can't touch it.
Expert:  Dimitry K., Esq. replied 4 years ago.
Thank you for your follow-up, Sharon.

The moment you physically receive the funds, the creditors can pursue them. So long the assets remain inside the trust, the assets are safe, but the moment they are disbursed, the creditors will legally be able to intercept them and pursue them since the transaction causing the inheritance to take place occur ed within 6 months of the bankruptcy discharge. My apologies but the way to keep the funds safe is to formally refuse your share in this situation.

Good luck.
Customer: replied 4 years ago.

we don't mind paying but the attorney said we might have to pay off student loans my husband co'signed for our daughter even though they are not in default. do you know if thats true or is that another question i need to pay for?

 

Expert:  Dimitry K., Esq. replied 4 years ago.
Thank you for your follow-up, Sharon. I see the questions as related and will be happy to clarify.

Student loans, if co-signed, are NOT generally able to be discharged via bankruptcy. There is no need to pay them off faster if they are not in default, but your spouse remains liable for the loans if they are in default and also because he would not be able to legally discharge his interest owed on the loans via bankruptcy.

Good luck.
Dimitry K., Esq. and 12 other Legal Specialists are ready to help you