Legal Question in Bankruptcy in Iowa

Benificary of assets

Should I change my benificary of my assets to excude a family member who is filing for bankruptcy. I am 70 and single now with 3 grown children.(one of which is filing for bankrupcy) I know bankruptcy lasts for 7 to 10 years and I might die before that time. If I were to leave her on my assest and I should die in the next few years can they come in and take it from her.


Asked on 4/19/02, 12:24 pm

2 Answers from Attorneys
Bruce Buckrop Bruce Buckrop

Re: Benificary of assets

Bankruptcy is fixed as of a moment certain, and actualy stamped with a minute date when filed ,i.e 4-15-2002 @ 9:32 a.m. so while proceduraly it last a few months, the moment it is filed controls, in the case of inheritance's the trustee could try to gain control of any inheritance for 6 month only past the filing date.

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Answered on 4/19/02, 12:31 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Benificary of assets

Short answer --- there is probably no need for you to change beneficiaries.

As long as the child who is filing for bankruptcy is filing under Chapter 7 the inheritance will very likely not be an issue. A Chapter 7 case provides that the Trustee can take inheritance within 180 days from the date a case is filed. So if you are in good health the bankruptcy will in effect be over in 6 months. If however, your child is filing under Chapter 13 there could be some problems. Chapter 13 cases can last from 3 to 5 years. ph. (800) 303-0720

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Answered on 4/19/02, 4:58 pm


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