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.
A new question is answered every 9 seconds

Ask a Bankruptcy Lawyer

FiveStarLaw
FiveStarLaw, Attorney
Category: General
Satisfied Customers: 3317
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Spendthrift Trust and Bankruptcy

What is a Spendthrift Trust?

A spendthrift trust is a trust that is usually created for a person who may not have any control over spending. A spendthrift clause in a trust gives the trustee the authority to decide how the trust funds may be used to benefit the beneficiary. In most situations, the creditors of a beneficiary of a spendthrift trust may not use the funds in the trust for repayment till the funds are distributed to the individual as the funds may not be under the direct control of the beneficiary.

Would a Spendthrift Trust be Exempt from Bankruptcy when Filing for a Chapter 7 Bankruptcy?

It is likely that a spendthrift trust may be exempt from bankruptcy while filing for a Chapter 7 bankruptcy, however, if the asset that is a part of the trust is sold during the filing of the bankruptcy, then it may no longer be protected and the bankruptcy court may take the money.

Are Self-Settled Spendthrift Trusts Legal in Minnesota?

The laws about spendthrift trusts may differ from state to state in the US. In most states like Minnesota, a spendthrift trust may not be set up by a settler to avoid paying his/her creditors. Such a trust would make the settler the beneficiary as well. Such a self settled spendthrift trust may be considered illegal.

Can a Beneficiary of a Spendthrift Trust change the Trustee at his/her Will?

Beneficiaries of a spendthrift trust may not change the trustee of the trust at their own will.

Would the income received from a Spendthrift Trust be Affected if an Individual filed for Bankruptcy?

In most situations, the spendthrift trust would not be affected if an individual filed for bankruptcy. However, if the individual receives any income from the spendthrift trust, then the income may be affected by the bankruptcy. The individual may have to include the income that he/she gets from the trust along with any other income while filing for bankruptcy.

Can an Individual Add a Spendthrift Clause to a Trust to prevent it from being affected by Bankruptcy?

A trust may be protected from the bankruptcy code only if it contains a spendthrift clause in it. However, this clause must be added by the individual who created the trust before he/she passed away. The beneficiary of the trust may not be able to add the spendthrift clause to a trust to prevent it from being taken away by the bankruptcy courts.

Would a Revocable Trust be affected, if the Beneficiary filed for a Chapter 13 Bankruptcy?

It is likely that the revocable trust may get affected if the beneficiary files for a Chapter 13 bankruptcy. The creditors may use the money from the trust. However, if the trust is a revocable living trust and has a spendthrift provision in it, then it may be protected from the bankruptcy court. A spendthrift provision ensures that the trust is not a part of the bankruptcy estate. It prohibits the transfer of any of the assets that are a part of the trust to the creditors.

Is there anything like a Non Grantor Spendthrift Unit Trust?

It is unlikely that there is anything like a non grantor spendthrift unit trust. In most cases, there is a regular non grantor trust. This trust is not owned by any individual.

Filing for bankruptcy can have a lot of aspects and rules that the common individual with little knowledge of the law may not know of. The spendthrift clause in trusts is just one of them. Knowing about the spendthrift trust and the spendthrift clause can help individual’s know what they may lose to the creditors and what they can protect from being lost. It can help individual’s dealing with a bankruptcy situation; deal with it in a better and educated manner.

Ask a Bankruptcy Lawyer

FiveStarLaw
FiveStarLaw, Attorney
Category: General
Satisfied Customers: 3317
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
characters left:
Bankruptcy Lawyers are Online Now

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.

Bankruptcy Lawyers are online & ready to help you now

FiveStarLaw
Attorney
Satisfied Customers: 3317
Bankruptcy Lawyer. Experienced.
Terry L.
Attorney
Satisfied Customers: 2389
Better Business Bur 15yrs bankruptcy experience. Chicago Bar
cortrightlaw
Attorney
Satisfied Customers: 511
Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

Recent Spendthrift Trust Questions

< Last | Next >
View More Bankruptcy Law Questions