For the most part the US bankruptcy laws are quite clear regarding inheritance, but like many laws, there are a few loopholes that only an experienced Ohio bankruptcy attorney may know about or be able to spot in order to further assist your financial well being.
When filing a Chapter 7 bankruptcy all your assets: property, money, financial instruments, etc. are all lumped together and liquidated in order to pay off your creditors, this includes property you may be receiving in the near future including money from lawsuits and inheritance. In most cases, if you receive inheritance within 180 days of filing bankruptcy it becomes part of that collection of assets or your bankruptcy estate. This includes not only cash but also land, house, or personal property. Again, if it falls within your state’s exemptions or federal exemptions, you may be able to keep the inheritance.
Chapter 13 bankruptcy is different than Chapter 7, and inheritance is no exception. If you filed a Chapter 13 bankruptcy and subsequently received inheritance, then the amount inherited will typically be factored into how much you will pay back to your creditors in the repayment plan.
Full disclosure is an absolute necessity in bankruptcy proceedings. If not, your case could be dismissed or worse, you could face criminal charges. You must disclose your inheritance the moment you become aware of it. This includes instances where you won’t immediately receive the inheritance.
Bankruptcy protection can have long lasting financial and legal repercussions, so it’s important to make sure that everything is done correctly. When it is, the bankruptcy laws work in the debtors favor and allow you to get a second chance. With such long last implications, it’s crucial to have a trustworthy and knowledgeable bankruptcy attorney in Dayton Ohio you can turn to, in order to ensure your petition is accepted by the courts and your debts are ultimately discharged.