If I just claimed bankruptcy but have been named in a trust to receive money, can I accept the money?

I claimed bankruptcy. Still waiting for my discharge. I was notified in the meantime that I will be receiving an inheritance. What are my options? Can I accept the money?

Asked on December 5, 2011 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 8 years ago | Contributor

Assuming you filed a Chapter 7 case, you must notify the Trustee in your case about the inheritance.  If you have exemptions left to protect the inheritance amount, you should amend your schedules for that.  Otherwise, you will need to turn over the inheritance to the Trustee.   You may be able to convert your case to another chapter and do a repayment plan, but you need to consult with a bankruptcy attorney to evaluate all your options.

 

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 8 years ago | Contributor

Assuming you filed a Chapter 7 case, you must notify the Trustee in your case about the inheritance.  If you have exemptions left to protect the inheritance amount, you should amend your schedules for that.  Otherwise, you will need to turn over the inheritance to the Trustee.   You may be able to convert your case to another chapter and do a repayment plan, but you need to consult with a bankruptcy attorney to evaluate all your options.

 


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