Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hello and thank you for allowing me the opportunity to assist you.The trust itself may not be reached, but once money is distributed to you, you would have the duty to inform the bankruptcy trustee because of the increase in income. The bankruptcy trustee would then likely demand that your plan payments increase. Even if you don't inform the trustee, as you mentioned, if he checks into your finances (e.g., bank statements) and sees the money, then he'll probably demand an increase in plan payments.So, I would likely wait until the bankruptcy is closed before accessing any of the funds in the trust.Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is much appreciated.Thank you for using our service!