Thursday, January 19, 2012

What happens if you receive an inheritance after filing for bankruptcy in Bucks County?

The first thing to remember is to be truthful! Any debtor who receives an inheritance within 180 days after filing must report the inheritance to the trustee (normally done through your Bucks County Bankruptcy Lawyer). Failure to do so is a violation of federal bankruptcy law with the potential consequence being imprisonment or other sanctions. Here is an example of bankruptcy fraud where an individual was sentenced to 39 months of prison for failing to reveal an inheritance to the U.S. Trustee.

It does not matter what the inheritance is; whether it is cash, stocks, furniture, automobiles it must be reported However, the debtor is entitled to claim the legitimate exemptions allowed by the bankruptcy law.

In a Chapter 13 bankruptcy in Bucks County, any unprotected inheritance will be included in the repayment plan. In a Bucks County Chapter 7, any unprotected inheritance assets are liquidated and distributed to creditors. As with any other aspect of bankruptcy, the advice of an attorney is critical and paramount.

1 comment: