Yes, there's a chance the inheritance might become part of the Bankruptcy estate.

Answer Applies to: Washington
Replied: 1/18/2012

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Planning a bankruptcy around an inheritance is always tricky. Basically, you lose an inheritance if you file bankruptcy and someone leaves you an inheritance within six months of filing. Thus, you can keep an inheritance received prior to filing or after six months.

Answer Applies to: Colorado
Replied: 12/26/2011

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The inheritance rule in bankruptcy makes an inheritance part of the bankruptcy assets if it occurs within 180 days of filing. After that it is unaffected.

Answer Applies to: California
Replied: 12/15/2011

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Something that may or may not happen in the future is not currently part of your estate so you should be fine to file now.

Answer Applies to: Utah
Replied: 12/15/2011

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If he dies before you file bankruptcy or within 180 day after you file bankruptcy, the inheritance becomes part of the bankruptcy estate. You would then have to turn the funds over to the bankruptcy trustee to distribute to your creditors unless you can exempt the funds. Whether or not you can exempt the funds depends on how much you receive and the amount and type of other assets that you are exempting.

Answer Applies to: Minnesota
Replied: 12/15/2011

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Any property you inherit up to one year after your Chapter 7 filing could become part of the bankruptcy estate. If you are named as a beneficiary in a will, the timing of the inheritance will be around the time that the will is offered up for probate, and that would be after your grandfather has passed away. Being named as a beneficiary in a will does not constitute an asset to you until your inheritance is realized, though. It is not yet an asset of yours. If you need immediate relief, you might be better off filing the Chapter 7 now, and not concern yourself with a potential inheritance, unless your grandfather is currently ill, or is in poor health.

Answer Applies to: Georgia
Replied: 12/15/2011

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You only have to report the inheritance if he dies within 6 months of after you file (( or if he dies prior to your filing). Merely the fact that you might get something some day is not enough that you have to disclose it.

Answer Applies to: Michigan
Replied: 12/15/2011

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Until he passes away, you do not have anything. If he passes away within the 6 months after filing for bankruptcy, you do have to report it. Also, if he grants you money within the 6 months after filing, you have to report that money.

Answer Applies to: Georgia
Replied: 12/15/2011

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Unless you think he will die in the next six months, a potential inheritance won't likely matter.

Answer Applies to: Georgia
Replied: 12/14/2011

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Any inheritance you receive within 6 months AFTER you file is also bankruptcy property which the trustee can use to pay your creditors.

Answer Applies to: California
Replied: 12/14/2011

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The most obvious thing is see if he can help you now as to avoid filing Bankruptcy.

Answer Applies to: Georgia
Replied: 12/14/2011

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Just make a deal with God and Grandpa that her Grandpa will not die within 6 months of thedate that you file your bankruptcy. If he does, you could lose some or all of your inheritance. Of course, if he dies before you file bankruptcy then you may lose your inheritance directly to creditors who are smart to attach your inheritance. So go talk to an attorney and tell them your problem.

Answer Applies to: Ohio
Replied: 12/14/2011

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You must report all inheritances that you become entitled to - if your right to receive them occurs within 180 days of the date you file for bankruptcy protection.

Answer Applies to: California
Replied: 12/14/2011

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The question is impossible to answer without knowing the likelihood that your grandfather will die within 6 months after the bankruptcy as is filed. Normally all property acquired after a bankruptcy filing is not property of the bankruptcy estate and is not subject to seizure by a bankruptcy trustee. Inheritances obtained within 6 months after filing for bankruptcy are an exception to that general rule. Any inheritance obtained within 6 months of filing for bankruptcy becomes property of the bankruptcy estate and may be seized by the bankruptcy trustee.

Answer Applies to: Texas
Replied: 12/14/2011

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You should set up a free consultation with an experienced bankruptcy attorney. By law you must report any inheritance received even 6 months after the closing of your bankruptcy case. It depends on the amount of what you receive or will be soon receiving whether you should file now or wait. You would need to provide a copy of your grandfather's living will and or trust. If it is a set amount you'll be receiving, your bankruptcy attorney may be able to exempt it (protect it) in your bankruptcy, it just depends on the amount. If it is an asset like a house, a car, jewels, stock etc., we still have to determine it's possible value and exempt it in your bankruptcy. Even though your grandfather is alive, this is something you may possibly receive in the future, so it has to be listed and exempted. A good attorney will be able to tell you whether you should just file bankruptcy now or whether you need to wait to file. Go contact a local experienced bankruptcy attorney. Good luck.

Answer Applies to: California
Replied: 12/14/2011

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Most of us "might" get an inheritance. That will have no bearing on the bankruptcy. There is nothing to report in just knowing that someday you will get some money from him. If you file bankruptcy and your grandfather dies, the trustee has a right to be notified for 180 days after you file. It will become part of the estate. How much money is it? Is your grandfather ill? If he dies before you file can you list the asset and exempt it? You have to answer these questions and more. I would seek knowledgeable local bankruptcy counsel to advise me before filing.

Answer Applies to: California
Replied: 12/14/2011

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You will be required to report any inheritance which is a current asset (not your case as you haven't received it) or anything you expect to receive or actually receive within six months of your case being discharged. If you're talking about a Chapter 7 case, it'll likely be completed (without complications) in about 90 days from the date of filing. Unless your grandfather passes in the next nine months or so you should be able to file, get a discharge (assuming you're eligible) and get through the six month reporting period with him still in good health.

Answer Applies to: New Hampshire
Replied: 12/14/2011

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If you become eligible for an inheritance within 6 months of filing bankruptcy, you may have to turn it over to the Trustee to pay your creditors. If your grandfather is still alive 6 months after you file then there will be no effect on your bankruptcy.

Answer Applies to: Colorado
Replied: 12/14/2011

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If you expect your grandfather to pass on soon, you will want to hold off on filing bankruptcy.

Answer Applies to: Illinois
Replied: 12/14/2011

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If your grandfather is still alive, there is nothing to report as you do not have an asset yet. (Grandpa could change his will or lose all his assets and leave you $0.00!) However, if you file and anyone passes within 180 days of filing bankruptcy and ultimately leaves you something, you will be required to turn over any inheritance to the bankruptcy court to be divided among your creditors. To decide what to do you have to weigh the chance that someone will die and leave you something during that narrow window of time against the benefit of and need for bankruptcy now. Also, if your inheritance is MORE than you owe, you would receive a refund of the money not needed to pay your debts. I usually tell people it doesn't pay to worry about this too much, because if you received your inheritance tomorrow you would pay your bills with it so if it turns out you file and then receive the inheritance within 180 days, is it so bad to pay your bills in that unlikely scenario?

Answer Applies to: Wisconsin
Replied: 12/14/2011

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I would be very hesitant about this. The inheritance could be lost to the bankruptcy trustee unless part of a spendthrift trust.

Answer Applies to: Illinois
Replied: 12/14/2011

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Make sure that he amends his will before you file. If you inherit within 180 days of filing, the inheritance goes to the estate.

Answer Applies to: Washington
Replied: 12/14/2011

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Any inheritance within six months after filing of Ch 7 is property of the bankruptcy estate and must be surrendered to the trustee.

Answer Applies to: Colorado
Replied: 12/14/2011

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If he has not passed away and you have not received any money yet then you should be OK unless he is likely to pass away very soon. In which case, you may want to wait.

Answer Applies to: New York
Replied: 12/14/2011

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This must be included in the bankruptcy.

Answer Applies to: Florida
Replied: 12/14/2011

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You only have to report property that you own at the time of filing. If you have not inherited yet, you don't have the obligation to report it at this time.

Answer Applies to: California
Replied: 12/14/2011

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You don't have to report the potential inheritance however if he is in poor health and may die within 180 days of your filing the petition, your inheritance may have to be used to pay your creditors.

Answer Applies to: Minnesota
Replied: 12/14/2011

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If your father dies within 180 days after the filing of the bankruptcy case the Trustee may have a claim to the inheritance otherwise it is your inheritance.

Answer Applies to: Michigan
Replied: 12/14/2011

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If you become entitled to an inheritance in the 180 days after filing for bankruptcy, the trustee will take it.

Answer Applies to: Colorado
Replied: 12/14/2011

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If he is still alive, his estate is not part of your estate and even if he passed away, estate expenses and other gifts must be taken into consideration.

Answer Applies to: Illinois
Replied: 12/14/2011

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This is a contingent interest which means he can remove you anytime until he dies. Thus, it should not be a problem.

Answer Applies to: California
Replied: 12/14/2011

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It isn't your money until he dies. If you file bankruptcy, the Court has a right to the inheritance for 180 days following the date of filing. After the 180 days has passed, you get to keep it. The secret is to keep your Grandfather healthy for 180 days.

Answer Applies to: Texas
Replied: 12/14/2011

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If you believe the inheritance will come in the near future, you could have to turn over some proceeds. If you feel he is in good health and will not pass, then you're OK to file.

Answer Applies to: Florida
Replied: 12/14/2011

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No you don't have to report it. Inheritance only becomes vested after your grandfather's death, right now you only have a potential claim because he can still change it at any time. If, however, he's going to give you a gift right now you will have report it.

Answer Applies to: Florida
Replied: 12/14/2011

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You only have to worry if he dies within 180 days of the filing of your petition. Any property which you receive by way of inheritance becomes part of your bankruptcy estate if you become acquire or become entitled to acquire within 180 days of the filing date. Hopefully he stays healthy for many years after you file so it is not an issue.

Answer Applies to: California
Replied: 12/14/2011

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If you become entitled to an inheritance within 6 months of filing the Chapter 7 bankruptcy case you need to report it to the trustee and the money can be taken to pay creditors. Therefore, you will be taking a chance that your grandfather might pass away within six months of your filing the case.

Answer Applies to: California
Replied: 12/14/2011

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