Should I continue with bankuptyif Ifound out I am getting money from a trust?

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Should I continue with bankuptyif Ifound out I am getting money from a trust?

I started filing bankruptcy and now going to get $10,000 up front and $5,000 a month for the rest of my life. I was told to spend the money quickly like a new roof, etc. Is it possible when we go to court it could be rejected and tell me I have to pay the bills anyway ?

Asked on February 5, 2012 under Bankruptcy Law, Florida

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, since you now have an income flow of $60,000.00 a year at minimum, your trustee will need to be informed and you can either try to turn this into a chapter 13 bankruptcy wherein you reorganize the debt and pay for items over time or you simply cancel or withdraw your bankruptcy claim (which is great for your credit rating to not have a bankruptcy on record) and then you begin to pay the creditors you owe. You may even try to negotiate directly with those creditors so the payments are less of an upfront shock. Once this is all done and you have zeroed out your debt, make sure you pull up all three credit reports and begin disputing to ensure the debts show as zero and the bankruptcy filing is deleted from your record. You will probably need to show proof so make sure you keep all statements as they come in.


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