Legal Question in Bankruptcy in Arkansas

Bankruptcy regarding seizure of future inheritance income

Can bankruptcy trustee claim & seize future inheritance of a bankrupt client as an asset of the bankruptcy estate? Bankruptcy was granted in Arkansas approx. 2 yrs. after father died who resided in Texas. I am executrix of my deceased fathers' estate which has taken a long time to administer. I have one piece of remaining property to sell and it has been over one year since the bankruptcy was granted and may be another year before I can wrap up the estate by dispersing final estate funds, if any, to the heirs. Does bankruptcy law dictate that I turn over my brothers portion to the bankruptcy trustee & also, is there a statute of limitations where the bankruptcy estate can no longer seize future inheritance?


Asked on 7/19/00, 11:09 am

1 Answer from Attorneys
Shai Oved The Law Offices of Shai Oved

Re: Bankruptcy regarding seizure of future inheritance income

Property of the estate includes any legal or equitable interest which the Debtor holds including any inheritance which the Debtor receives or is entitled to receive within 180 days of the filing of the bankruptcy case.

The Trustee can recover property of the estate. The amount of time the Trustee has depends on what theory the Trustee seeks to recover the property and whether the property was disclosed in the bankruptcy papers.

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Answered on 9/17/00, 7:56 pm


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