[confused1087]

We are 2 years into paying our monthly payments on our Chapter 13 bankruptcy, I have just inheritated a large sum of money, do I have to let my lawyer and trustee know about this?

[confused1087]

We are 2 years into paying our monthly payments on our Chapter 13 bankruptcy, I have just inheritated a large sum of money, do I have to let my lawyer and trustee know about this?

[DownUnder]

Yes,you have to let your lawyer and trustee know, if not you may find yourself in hot water.Bankruptcy is serious stuff. Also what makes you think this would not be found out since if it's a large inheritance it would have to be reported on your taxes. If I am wrong someone correct me on this

[Fr_Chuck]

Yes, it will be considered income and effect the money you have to pay,

[XTC832]

When you file for Bankruptcy, you are creating an "estate" that is more or less supervised by the trustee. Chapter 7 estates in most cases end rather quickly. This is because most Chapter 7 bankruptcies average about 3 to 6 months, sometimes longer if there is a lot of liquidation involved. Until your Chapter 13 case closes (usually 3 to 5 years) any money that comes into the estate has to be reported to the trustee. This includes inheritance money, income tax refunds, virtually any income above and beyond your normal salary and/or what you declared in your petition. Bankruptcy law dictates that creditors are to receive as much in Chapter 13 as they would if you filed for Chapter 7. Your Chapter 13 payment plan was based on your then-current numbers; since the case is still open and the numbers have changed, almost invariably they are readjusted. It's really at the trustee's discretion as to how it's adjusted. Definitely make your attorney aware of this inheritance. Even though you're 2 years into your plan, your case could get dismissed if you don't disclose the information. Good luck.