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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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We have filed Chapter 13 bankruptcy in February. What will

Resolved Question:

We have filed Chapter 13 bankruptcy in February. What will happen if I get an inheritance of 34,000 per year. Will the court take all the money. I believe the bankruptcy was for 60 months, total plan payments equaling $80,516.00 with monthly payments of$1325.00
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

1) What is the total amount of your unsecured debt?

2) You said you might inherit "$34,000 per year". For how many years is that?

Customer: replied 6 years ago.
Most of the bankruptcy is balance owed on 2 vehicles,balance on a camper, past due mortgage payments on two properties,past due school and property taxes on both ,hospital bills of about $600 and a couple of small credit cards each under $2000. We are making the current mtg payments and keeping current on taxes.
I think the inheritance was set up for $50,000 per year. I figure the actual cash recd will be about $34,000 per year after taxes. The inheritance will be for life, I am 63 years old so hopefully for at least 20 more years. Haven't recd. inheritance yet and hopefully not any time soon but my Mom is in failing health.
Expert:  cfortunato replied 6 years ago.

If you do become entitled to the inheritance while the Chapter 13 Bankrutpcy is still in progress (before the end of the 60 months), the Bankruptcy trustee can take enough money from your inheritance to pay in full the unsecured debts only - the school loan, property taxes, hospital bills, and credit card debts. The rest of the inheritance would belong to you.

If you become entitled to the inheritance after the Chapter 13 is completed (after the 60 months), the Bankruptcy court would get none of your inheritance.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

Customer: replied 6 years ago.
While beginning the bankruptcy our attorney stated we had to let them know if we received any inheritance or gambling money within the first six months. could this be because they were giving us six months of lower payments while we found a job to help make the payment of $1,325 after six months?
Expert:  cfortunato replied 6 years ago.

A Chapter 7 debtor must inform the Bankruptcy court of the entitlement to an inheritance within 6 months of filing the Bankruptcy. Bankruptcy Stat. 541(a)(5)(A).

A Chapter 13 debtor must inform the Bankrutpcy court of the entitlement to an inheritance within the 60 months of the Chapter 13 plan period. Bankruptcy Stat. 1306(a)(1).

It is possible your attorney does not know about the second statute.

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