There are numerous considerations that must be made before you file for bankruptcy protection. The more planning you put into your filing, the more likely you are to succeed. One factor to consider is whether you will be receiving an inheritance anytime soon. If so, you need to understand the dates that are important in the bankruptcy proceeding.
The date that the bankruptcy case or the estate of the deceased is settled or closed is not important. The bankruptcy court is concerned with the bankruptcy petition date and the date that the person who left you the inheritance dies.
Under federal law, a debtor who inherits money or assets within 180 days of filing a Chapter 7 bankruptcy, the inheritance can be administered in the bankruptcy estate and used to pay creditors. This is important to consider when strategizing when the best time to file your bankruptcy case may be.
In a Chapter 13 filing, an inheritance is treated differently. If you inherit within 180 days of your bankruptcy petition date, the value of the inheritance will be used to determine the amount you must pay into your Chapter 13 plan to pay your creditors. In some cases, your inheritance may be considered to be property of your bankruptcy estate even after the 180 days has run. The Chapter 13 trustee may argue that good faith mandates that the debtor use excess funds for payment to the creditors under the plan.
In sum, if you are planning to file for bankruptcy protection and you are likely to inherit a substantial amount, you must consider all of your legal options. Seek advice and guidance from an experienced bankruptcy lawyer to determine what strategy is best for you.
The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.