Legal Question in Bankruptcy in California

Re: Chapter 13 Bankruptcy question

Your brother needs to disclose to the bankruptcy court the change of circumstances (i.e., the inheritance of a substantial amount of money) and unless he can exempt the money somehow, then yes, he may be required to pay that into the court. A thought, however, is that if the decedent had a trust, and the trust had a spendthrift clause in it, the trustee could elect not to disburse to your brother at this time. If I were representing him in the bankruptcy, I would still make him disclose it, as I think you teter on the verge of bankruptcy fraud by not doing so.

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