When you’ve filed for Chapter 13 bankruptcy, it’s common for all of your property to become a part of your bankruptcy estate. Your bankruptcy estate consists of assets like property you currently own, your share of the marital property, property you’ve recently given away and property you are entitled to but have not yet received. This includes any property you receive in an inheritance.
When you’ve received a cash gift as an inheritance, however, it may affect your Chapter 13 bankruptcy repayment plan. While the trustee may not ask for your entire inheritance, they will likely expect you to increase your payment amounts. The amount of money that the trustee requests hinges on when the cash gift was received and the rules of your local court. Courts are conflicted over an inheritance received after 180 days from filing. In some instances, the courts have allowed the debtors to keep the inheritance, and others have required the debtor to pay the inheritance into their payment plans. Generally, when receiving a cash gift within the 180 day period, you’ll be required to pay the nonexempt portion amount into your debts.
Bankruptcy attorney Joel R. Spivack understands how confusing and tedious it can be to navigate through Chapter 13 bankruptcy laws alone. He has focused on guiding his clients though bankruptcy law since 1995, so his compassionate legal counsel in this area is invaluable. A Chapter 13 bankruptcy may be the best option for you when your property is at risk or you hold debts that can’t be eliminated with a Chapter 7 bankruptcy. Attorney Joel R. Spivack will work tirelessly to ensure the best course of action, halt your foreclosure and work towards rebuilding your equity together. To contact the Law Office of Joel R. Spivack for further information about Chapter 13 bankruptcy, call 856-488-1200 or fill out our online contact form.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney/client relationship. If you are seeking legal advice, please contact our law firm directly.