Financial resources and assets gained through inheritance can help a struggling individual to gain his or her footing. Many people save their whole lifetime in order to provide their loved ones with financial support after they are deceased. Typically an inheritor will be unaware of the size of a potential inheritance and therefore it can be difficult to determine how to figure inheritance money into large financial decisions, such as filing for bankruptcy.
Factoring Inheritance into Bankruptcy
There are two major factors that will determine how inheritance is treated in the bankruptcy process: the type of bankruptcy that you are pursuing, and when the inheritance is to become available. Before inheritance money is considered part of your estate, an exact date must be set for the receipt of the funds.
If your inheritance is received within 6 months of a Chapter 7 bankruptcy filing, you may be required to use that money to pay off your creditors. Under Chapter 13 bankruptcy, once the size of the inheritance has been determined, it will be regarded as a change in financial circumstances and subsequently will impact the payment structure established for repaying one’s debts.
If you have questions about how inheritance money will play into your bankruptcy filing, the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, can provide you with answers. Contact us today by calling 414-377-0518 to learn more about your legal rights and options.