Legal Question in Bankruptcy in Texas

bankruptcy and inheritance

if a person is due to receive a large inheritance but has filed bankruptcy, shouldn't the debts be paid with the inherited money?


Asked on 6/19/03, 11:03 am

2 Answers from Attorneys
Michael Dover Michael A. Dover, PC

Re: bankruptcy and inheritance

That depends upon when the person receives the inheritence. If the debtor becomes entitled to the inheritence (i.e., the person dies)before or within 180 days after filing the bankruptcy, then the inheritence becomes property of the bankruptcy estate and may be applied to payment of creditor claims. If the debtor becomes entitled to the inheritence after 180 days of filing, then the inheritence does not become part of the bankruptcy estate.

Read more
Answered on 6/19/03, 11:24 am
Andrew Nichols Law Office of Andrew B. Nichols

Re: bankruptcy and inheritance

Within 180 days after a bankruptcy is filed, any inheritance would belong to the bankruptcy Trustee assigned to the case. Yes, the inherited money would most likely be used by the Trustee to pay debts. Please feel free to call me to discuss this in more detail. (214) 979-7330

Read more
Answered on 6/19/03, 12:09 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Texas