Bankruptcy & Your Inheritance

If you are considering filing for bankruptcy, but you believe you may be receiving a substantial inheritance soon, contact Levitt & Slafkes, P.C.. There are certain dates that matter in your bankruptcy case. The date that the bankruptcy case or the estate of the deceased is settled or closed does not matter.  The day you filed your bankruptcy case and the date of death of the person who left you the inheritance are the dates that are important. Under bankruptcy law, if you inherit money within 180 days of filing a Chapter 7, the money can be used to pay your creditors.  In a Chapter 13, if you inherit money within 180 days of your case, the amount of the inheritance will be factored into determining how much you must pay into a Chapter 13 plan to pay your creditors. It is important to note that the inheritance may also be property of the bankruptcy estate in a Chapter 13, even after the 180 days has expired.  A Chapter 13 trustee may contend that “good faith” requires that you devote any excess money or assets to the plan. If you are considering filing a Chapter 7 or Chapter 13 and you believe that an inheritance is possible, it is important to confer with experienced bankruptcy attorneys. The legal team at Levitt & Slafkes, P.C. can review your individual circumstances and explain all of your options. We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C..