Legal Question in Bankruptcy in California
Had a bankruptcy 2006, after I filed, my irrevocable trust paid for it, can that bankruptcy be reversed?
1 Answer from Attorneys
Hmmm, I have sparse info and some ambiguities here. But here's the deal with inherited trust receipts: the Long Arm of the Chapter 7 Trustee reaches assets and interests (including future interests) you had prior to and as of the date of filing. However, "you are to report to the Court and Trustee, by formal written Amendment filed with the Court, any rights to an inheritance, property settlement agreement, or life insurance proceeds that occur within 180 days of the date your case was filed." In a chapter 7, 180 days after filing generally means about 3 months after the discharge. Thus, if you receive trust benefits within 180 days of filing, you'd have to be able to exempt (use limited allowances to protect) such benefits.
Disclaimer: we can't "talk" in this forum. Before taking or refraining from action based upon this answer, you would need to consult with a bankruptcy attorney in your area for a true exchange of information; material facts are missing from your query.