Ask Me Help Desk - Ch. 13 & inheritance

I filed Ch. 13 in Aug. 04... I will be finished with my case in September of this year ( in 6 months.). I am receiving an inheritance sometime soon, probably around 40-50K. Will I be able to keep it or will it go towards my case? Do I report the money to the court or will they automatically find out? I am an honest person and understand if I am obligated to report to the court, though. That money would certainly help my family have a new start when our case is FINALLY finished! Any answers about this would be greatly appreciated. I love in NC- in case there are state sensitive laws regarding inheritance and ch. 13.

If the probate clears and you get the money before the final discharge of the chapter 13 you are obligated to inform them, and yes they may look toward this money to repay those debts not paid at 100 percent.

If probate does not clear and you don't get the money till after the final discharge of the plan, there is no activity required on your part.

If you are honest, but want to keep the money, you tie up probate somehow so you are not paid till after it closes.

Now if you don't report, they may or may not find out, depends on how close a watch any of the ceditors are doing of you.

Now of course this is based on older laws, they may have changed, your best bet ask your attorney who did your chapt 13, they can not give out any of your info, so you can ask them for legal advice. They also may know a legal way you can get around it easier

Quote:

Originally Posted by suebeeham

I filed Ch. 13 in Aug. 04... I will be finished with my case in September of this year ( in 6 mos.). I am receiving an inheritance sometime soon, probably around 40-50K. Will I be able to keep it or will it go towards my case? Do I report the money to the court or will they automatically find out? I am an honest person and understand if I am obligated to report to the court, tho. that money would certainly help my family have a new start when our case is FINALLY finished! Any answers about this would be greatly appreciated. I love in NC- in case there are state sensitive laws regarding inheritance and ch. 13.

My bankruptcy packets read this way on bankruptcy and inheritances.
AS a Rule any assets you receive after the day you filed bankruptcy is not property that the bankruptcy court will take... The only time you would loose any proceeds after a bankruptcy is if you become entitled to an inheritance or property from a divorce or separation settlement with in 6 months of the date of filing bankruptcy. It also goes on to say that if I get an inheritance that I should contact my attorney and they can do actions to protect the funds.