[lmach]

My husband and I just filed for Chapter 13 a little more than a month ago. Not long after filing, my grandmother was diagnosed with pancreatic cancer and passed away within 2 weeks of her diagnosis. I had no clue that she had any money set aside or any sort of an estate, but at the funeral my father told me that my brother, sister and I would each be inheriting $5000. He told us it would take awhile, and this was the last I heard of it. Well, only 2 weeks later, my father said he had mailed the checks out. I consulted with my lawyer, who told me that I needed to let him know when I received the check because it would then become the property of the trustee. My question is can I sign my check over to my sister? The estate taxes have already been paid on the money so my father told me I did not have to declare it on my taxes. My husband and I have beey trying to save some money in case something happens with our health or our vehicles, since we both have older vehicles and are in bankruptcy so we wouldn't be able to finance new ones. This would be our emergency fund. What can I do to ensure that I can keep this money? Thanks.

[JudyKayTee]

You discuss this with your bankruptcy attorney. I would assume your Bankruptcy has not been completed, is not finalized. If that is the case, this is not your money. Bankruptcy has certain provisions for "sheltering" assets and property and I have no way of knowing how much money is involved here and if it can be sheltered. If you do not report it, it's Bankruptcy fraud.

Bankruptcy is not set up for people to not pay bills but hold money aside from creditors. The purpose is full disclosure.

What you are suggesting - signing the check over to a third party for safekeeping - is Federal fraud.

Looks like you're going to be driving around in used cars instead of new ones for a while longer.

[slowandeasy]

Hello Imach

JudyKayTee is right. If you sign the check over to your sister for safe keeping that is considered fraud and your chapter 13 could be dismissed. Your best bet is to just turn the check over to the bankruptcy trustee because it is considered property and as noted above full disclosure of all assets is required in bankruptcy.

[lmach]

I understand and have already disclosed this with my attorney. He hadn't responded to me yet and was just trying to understand the laws and if I had any options.

So, if you know by chance, when I receive the check do I cash it and sign a check for the full amount to the trustee or will my lawyer amend my case to reflect a $5000 income increase, thus increasing my monthly payment?

[JudyKayTee]

I understand and have already disclosed this with my attorney. He hadn't responded to me yet and was just trying to understand the laws and if I had any options.

So, if you know by chance, when I receive the check do I cash it and sign a check for the full amount to the trustee or will my lawyer amend my case to reflect a $5000 income increase, thus increasing my monthly payment?

It's up to your Attorney to make a recommendation which works out best for you.

[mr.yet]

Speak to your attorney, but must probates for will can take up to year or more to finalize

[George_1950]

Check this: "When you file bankruptcy, you are required to fill out quite a few bankruptcy papers. Among these are Schedule C, which is a form where you list the property you are claiming should be exempt (meaning you get to keep it)." Federal and State Bankruptcy Exemptions