Legal Question in Bankruptcy in Texas

Bankruptcy and Inheritance

My daughter and son-in-law may have to file for bankruptcy. Against my judgement and advise, they are presently checking the possibilities. My uncle, her great uncle, has included her as well as her brother and sister in his will incase of his death. He is 78 in great health but you never know at what time the end is. My uncle doesn't want any of my three kids to know about being included in the will, kinda like a surprise. Here is my question....if my daughter and son in law file bankruptcy, and something happens to my uncle, will her part automatically go to cover the bankruptcy judgement? I think they could do other things besides bankruptcy, but sometimes kids just don't listen to their parents. Another question....should I ask my uncle to revise the will just in case they file. What I would hate to see is because they do something really stupid that they loose a big part of her inheritance?


Asked on 1/16/03, 6:58 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: Bankruptcy and Inheritance

First of all I do not think filing for bankruptcy is foolish or misguided. For many people it is a sound and moral decision. You have to remember the credit card industry is charging people 20 to 23% interest. Many families could not pay that off in 30 years! PLEASE READ MY FIRM PHILOSOPHY. It is probably a good idea to file now before they receive this inheritance. Otherwise, the inheritance will all go to pay off creditors. If they file for bankruptcy they must report any inheritance or sweepstakes or lottery winnings that the receive for a 6 month period after filing bankruptcy. So, in other words, if the Great Uncle does not pass away during this short time period, the bankruptcy court will not have any authority over them to take away this money. I hope this adequately explains the law in this regard. Please feel free to contact me to personally discuss this situation in more detail. ph. (214) 979-7330 or (800) 303-0720

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Answered on 1/17/03, 10:47 am


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