Legal Question in Bankruptcy in New York

Re: Bankruptcy with Inheritance

I answered a very similar question to yours regarding bankruptcy and inheritance about 20 minutes ago. You may want to review that question and my response.

Regarding your question, assuming you file chapter 7 bankruptcy -- once you file bankruptcy ALL of your assets go into your bankruptcy estate and, unless you properly claim a legal exemption based on applicable law permitting exemption of such assets, goes to chapter 7 trustee to distribute to your creditors (or in the case of non-cash assets to liquidate to raise cash to distribute to your creditors).

One of the schedules filed with a bankruptcy petition is a schedule of exemptions. This details what you get to keep based on applicable exemption laws. Exemption planning in connection with bankruptcy is a complex subject and requires a review of all of your assets by an attorney with experience in this area. Since you have some assets you can afford to hire a lawyer. Exemption planning is really not a suitable subject for a "do it yourself" project. You need to consult with a lawyer.

This is a subject I know very well. I have published articles on the topic for lawyers in lawyer magazines and have helped debtors with complex exemption planning issues to try to maximize their exemptions through legitimate exemption planning (fully disclosed in their bankruptcy papers and to the chapter 7 trustee).

For general information about personal bankruptcy and exemption issues you can visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm and downloadable articles in pdf format on our website at www.starrandstarr.com/faqs.htm.

Please feel free to contact me to schedule a consultation at 8888678165.

The foregoing is not intended as legal advice for your specific situation and is intended as general information of interest to readers of these boards. YOU SHOULD CONSULT WITH AN ATTORNEY REGARDING YOUR SPECIFIC SITUATION