Legal Question in Bankruptcy in California

Re: Inheritence Disclosure When Filing for Personal Bankruptcy

If the debtor becomes entitled to receive an inheritance within 180 days after filing a bankruptcy case, that inheritance is property of the bankruptcy estate, as defined in 11 USC 541. If this is a chapter 7 estate, the inheritance asset(s) must be declared and turned over to the Trustee unless the debtor has an exemption that covers the value of the inheritance. A failure to do this is fraud and can result in the loss of debtor's entire discharge, as well as prosecution by the F.B.I.

Re: Inheritence Disclosure When Filing for Personal Bankruptcy

The date of death determines whether this is an asset of a bankruptcy case, not when the money is received. Under the Bankruptcy Code if someone dies prior to the filing or within 180 days of the filing, this information must be reported to the Trustee and your attorney. Not reporting this asset is a bankruptcy crime and it is a very serious matter investigated by the Justice Department and the FBI.