Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law
This answer was rated:

I was preparing to file for bankruptcy when I was notified

that my biological father had...
I was preparing to file for bankruptcy when I was notified that my biological father had been killed. While we were originally told that there was a will and no inheritance left in my name, we were recently notified that there was no will and his estate would be settled in probate and I may be a beneficiary. There is no guarantee I will inherit anything, however, I'm unsure how to proceed. What are my options in this situation?
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 8 minutes by:
9/4/2009
socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 39,498
Experience: Attorney and Real Estate Broker -- Retired
Verified
<p>If you are a beneficiary by intestate succession (no Will), then your rights are already vested, and a bankruptcy will deliver those rights straight into the hands of the bankruptcy trustee and your creditors. So, if you file bankruptcy, now, you're scr****, unless you disclaim your rights in the estate, and the other beneficiaries later gift what would have been your portion after the bankruptcy is discharged. </p><p> </p><p>And, if the trustee were to discover this plan, then you and your co-conspirators would be headed straight to federal prison for bankrutpcy fraud. So, if you think you can pull off this little "hat trick," I don't want to know about it, and you don't want to discuss a word of it with anyone -- especially not online!</p><p> </p><p>Hope his helps. </p><p> </p><p class="text-13-black" align="left"><u>Terms and Conditions</u>: By your continuing in this conversation with me, or by your clicking “<strong><u>Accept</u></strong>”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.</p>
Ask Your Own Bankruptcy Law Question
Customer reply replied 8 years ago
Relist: Answer quality.
Answerer assumed I was meaning to go through illegal means and did not answer my question to an acceptable degree. 80% of provided answer was disclaimer.
JoeLawyer
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience: Attorney in the practice of Bankruptcy Law since 1996
Verified
Hi Farmgirl:

Normally, if you are entitled to inherit anything, or if you become entitled to inherit anything within 6 months after a bankruptcy case, the Bankruptcy Court can take your inheritance and give it to your creditors (see 11 U.S.C. 541(a)(5)(A), HERE). You can still wipe out your debts, but you will lose you inheritance to do it.

One option is disclaimer: this is where you "disclaim," or surrender your right to inherit anything. Inheritance which is properly disclaimed may not be pursued by the Bankruptcy Court, but also may never be later obtained by you, without facing severe, potentially criminal, sanctions.

Disclaimer is very tricky and you would want to enlist the services of an estate attorney to ensure that you properly disclaim the inheritance. This is tough since, until you know how much you are inheriting, you won't know if it is worth the money to hire an attorney. You can read more about disclaimer and its relationship to bankruptcy by going HERE.

So, what I think is a more commonly made choice is to wait until the inheritance is received before filing bankruptcy, then decide whether bankruptcy is still a viable option. In other words, if you get enough money to pay off or settle your debts (which normally takes around 40% of the balance of unsecured debts), then you may not need to file bankruptcy at all. If not, you can consider bankruptcy down the road.

If however you need to file bankruptcy immediately, perhaps to avoid a writ of attachment, garnishment, foreclosure, etc, then without a crystal ball you will not really know what to do: if you file bankruptcy and inherit a lot of money, you will lose it, but if you wait to file bankruptcy to see how much you inherit and in the meantime you lose your home to foreclosure, then inherit $500, you will be equally miffed.

I wish I had better direction than that, but your question really is a tough one considering that you don't know how much money you may be inheriting. One thing to consider though, is that if you inherit enough money to pay everything off plus some, the Bankruptcy Court will only take the amount needed to pay off the debts plus pay the court fees (trustee fees), and you should get the rest of the money beyond that.

I'm not sure if i answered your question, so if not please feel free to follow up. I hope this helps and a positive feedback is always appreciated if this was useful to you.

LEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. Joseph Ross does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above is (c) Joseph Ross. All rights reserved.
JoeLawyer
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
Experience: Attorney in the practice of Bankruptcy Law since 1996
Verified
JoeLawyer and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask JoeLawyer Your Own Question
JoeLawyer
JoeLawyer
JoeLawyer, Attorney
Category: Bankruptcy Law
Satisfied Customers: 767
767 Satisfied Customers
Experience: Attorney in the practice of Bankruptcy Law since 1996

JoeLawyer is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

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

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.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, 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!!

ElaineAtlanta, 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.

TonyApopka, 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

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

767 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I am the buyer on a land contract. The seller wants to get
I am the buyer on a land contract. The seller wants to get out of the contract to go with another offer/contract. They have threatened to file bankruptcy if we do not accept a small fee to walk from o… read more
DrakeLAW
DrakeLAW
Juris Doctorate
973 satisfied customers
Received a notice of automatic dismissal without the entry
Received a notice of automatic dismissal without the entry of a discharge. for failure to file documents. a/b, D, E/F,I,J,J2,statement of your current monthly, income BUT I filed these forms but at 2 … read more
DrakeLAW
DrakeLAW
Juris Doctorate
973 satisfied customers
Law Educator I am attaching my rough draft to the trustee
Law Educator I am attaching my rough draft to the trustee -please advise in your professional opinion if there is something that needs to be deleted or added. Also, I am attaching the minute entry to … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
If the trustee rules that the person filing for bankruptcy
If the trustee rules that the person filing for bankruptcy has an equitable interest in real estate, can that ruling interfere with his exemption. Or is he allowed then to file for his right of redemp… read more
DrakeLAW
DrakeLAW
Juris Doctorate
973 satisfied customers
I had a hearing in bankruptcy court- does this mean I wasn't
I had a hearing in bankruptcy court- does this mean I wasn't supposed to defend myself against the one who called for the hearing?… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
If you have a trial scheduled and the US Trustees Office is
If you have a trial scheduled and the US Trustees Office is trying to get your case dismissed and you have been dealing with your attorney who has been doing things that will get him disbarred, how do… read more
Michael Bradley
Michael Bradley
JD
1,191 satisfied customers
I have a contract with a California corporation and the
I have a contract with a California corporation and the consideration are Pref shares of the company. There are three payments; an initial payment, 2 years later and 4 year later. Paid in thirds. The … read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,255 satisfied customers
If a debtor is subject to a wage garnishment and the wages
If a debtor is subject to a wage garnishment and the wages are garnished at the employer level, what happens to the non-garnished wages? Can the creditor now just go to the bank and get the 75% of the… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,307 satisfied customers
Capital One is going to garnishment my checking. I have two
Hi Capital One is going to garnishment my checking. I have two business account. one is a sole proprietorship. The other is LLC I was told they couldn't garnish a LLC. I just talk to some one at the b… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,244 satisfied customers
I received a letter from the united states bankruptcy court
i received a letter from the united states bankruptcy court southern district of new york … read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,307 satisfied customers
I have a nonperiodic garnishment for a credit card I did not
I have a nonperiodic garnishment for a credit card I did not pay or go to court. My car is paid off but the credit union has never sent me my title free and clear. I get social security disability. Ca… read more
socrateaser
socrateaser
Attorney
39,498 satisfied customers
I have a lien in my student loan, can they also garnish my
I have a lien in my student loan, can they also garnish my paycheck? How should I deal with the lender?… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,327 satisfied customers
I just received a notification that a creditor is garnishing
hello. I just received a notification that a creditor is garnishing my wages starting next month. I work for the school district. What can I do. Im ready to file bankruptcy if i have to. so 2 question… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,307 satisfied customers
I have hard evidence that the Trustee and Trustee atty were
Hello - I have hard evidence that the Trustee and Trustee atty were negligent, breached their fiduciary duties and allowed my federal case of fraud in the inducement run the SOL, without pursuing as t… read more
Dwayne B.
Dwayne B.
Juris Doctor
28,688 satisfied customers
The Trustee in a corporate bankruptcy case erased and/ or
The Trustee in a corporate bankruptcy case erased and/ or deleted tape recorded testimony of a key witness in a 2004 bankruptcy rule deposition. what recourse do I have being that witnesses testimony … read more
Legal Eagle
Legal Eagle
Attorney
Doctoral Degree
7,317 satisfied customers
If a judgement creditor in Utah wants to garnish a bank
If a judgement creditor in Utah wants to garnish a bank account does the bank need to be in Utah, or can they garnish a bank account in another state?… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,244 satisfied customers
Bankruptcy court trial hearing Brief needed. I am a
Bankruptcy court trial hearing Brief needed. I am a Creditor, already finished a Rule 2004 exam on Debtor, out of court. I must file brief and exhibits by this Friday.… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
I received notice from the Trustee of an "Order Striking
I received notice from the Trustee of an "Order Striking Filing For Failure To Comply With Required Procedures".I believe the problem is with a creditor who had an undeliverable address, however, I ha… read more
DrakeLAW
DrakeLAW
Juris Doctorate
973 satisfied customers

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).

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).

Show MoreShow Less

Ask Your Question

x