Bankruptcy is a powerful legal tool that helps people get out of debt. Under bankruptcy law, you are entitled to keep a certain amount of assets and belongings. In fact, the vast majority of bankruptcy filers get to keep all or most of their belongings. To understand how your assets, property, and personal belongings are protected in bankruptcy, read our article You Will Not Lose All of Your Belongings If You File For Bankruptcy.
If you are considering bankruptcy and anticipating an inheritance then it is critical that you carefully evaluate the benefits of bankruptcy and determine if it is the best course of action. We encourage you to consult with an experienced bankruptcy attorney so that you can understand how bankruptcy will affect you and any potential inheritance you may receive.
If you are in the Savannah, GA area we invite you to meet with us for a free consultation. Contact us here or call (912) 351-9000 today.
Inheritance Owed to You Before Bankruptcy
If you are owed an inheritance prior to filing for bankruptcy but have not yet received the funds, then the amount of the inheritance must be listed as an asset in your bankruptcy petition. Understand that many assets can be protected through the bankruptcy process. The amount of what can be protected varies by asset and by state. For a full list of Georgia exemptions, click here.
Inheritance After Bankruptcy – 180 Day Look Back Period
If you inherit assets, including money or property, within 180 days from the date you filed for bankruptcy, those assets are considered part of the bankruptcy estate. This means that if you receive an inheritance within this time-frame after filing bankruptcy, then the bankruptcy trustee may be able to seize your inheritance and use it to pay a pro-rata share to your creditors. However, if the amount of your inheritance is fully exempt, then the Trustee cannot seize your inheritance and you get to keep it.
Inheritance & Chapter 13 Bankruptcy
A Chapter 13 bankruptcy creates a three to five-year repayment plan. If you receive an inheritance while you are in a Chapter 13 repayment plan, then the assets may be considered in calculating (or re-calculating) the amount of your monthly plan payment. However, again if the inheritance is fully exempt, then you may retain your inheritance and your plan payment will not be affected.
Bankruptcy is A Complex Area of Law
Bankruptcy is complex. Here at the Law Office of Barbara B. Braziel we will make sure you understand the benefits of bankruptcy and how filing with affect you and your family. We invite you to learn more about our firm here and come meet with us for a free, no-obligation consultation.
Reach out to us by email at info@BrazielLaw.com or call (912) 351-9000.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. Find out more about Bankruptcy in our guide: All About Bankruptcy.