If you file for bankruptcy and then get an inheritance, are you required to repay the debt under the bankruptcy?

Asked over 1 year ago - Wood-ridge, NJ

There is some credit card debt, and a large debt for a hospital stay and surgeries performed at that hospital. In addition, this is the second time filing bankruptcy in 11 years.

Attorney answers (3)

  1. Anthony Matthew Vassallo

    Contributor Level 13

    4

    Lawyers agree

    1

    Answered . An inheritance is one of the few assets that you might receive after filing for bankruptcy that can be reachable by a bankruptcy trustee. The inheritance is reachable if you receive it within the 180 day period after you file for bankruptcy. It is intended to discourage the distasteful type of bankruptcy planning where someone with debts files for bankruptcy protection when hearing the news that the death of a wealthy relative is imminent.

    But the 180 days applies to everyone regarding of nefarious motive or simply bad timing.

  2. Sonila Isak

    Contributor Level 9

    4

    Lawyers agree

    1

    Answered . You are required to report your inheritance to your bankruptcy attorney or to the bankruptcy trustee upto 6 months after the date of discharge. Best of luck.

  3. Diane L Gruber

    Pro

    Contributor Level 18

    4

    Lawyers agree

    Answered . I agree with both attorneys. It is all in the timing. Talk with your BK attorney.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

Related Topics

Bankruptcy

Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.

Debt

There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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