It is a difficult decision to file for bankruptcy. However, it is the right thing to do, especially if you have overwhelming debt. Talk to a bankruptcy lawyer in Sherman Oaks first before you start filing.
Bankruptcy Lawyer in Sherman Oaks to Help You Get Out of Debt
Filing for bankruptcy is not an easy process. If you received money recently or are expecting an inheritance, you may want to talk to our bankruptcy lawyer about it. Our law office will assist you in keeping your inheritance.
After you have filed for bankruptcy, the next six months will matter a great deal. Within this period, your income will be part of your estate. That includes your inheritance. There are various factors that can affect your inheritance.
If you received money within the said period, then it will be part of your bankruptcy estate. Furthermore, if a loved one died during this time, anything that you are entitled upon the death of that person will be included in your bankruptcy estate.
That’s why the 180-day period is crucial. Anything that you are entitled to will be part of your estate.
Notifying Bankruptcy Trustee
You must notify the trustee if your loved one passed away and left you with money or property. It is crucial if you have filed for Chapter 7 or 13. Never conceal that information. Indeed, your inheritance will be taken away from you to pay your creditors. That is just how the law works.
If you are not sure, you must talk to our bankruptcy attorney on how to notify the bankruptcy court. If you received it within the period, you should change some bankruptcy forms. The form you fill out will hinge on the asset you inherited.
Can You Keep Your Inheritance
Whether you can keep your inheritance or not, it will still be part of your bankruptcy estate. However, it will also depend on whether the inheritance is covered by an exemption.
The exemption is a type of property that you can keep when you are within the bankruptcy period. You may retain your home equity, vehicle, household items, etc. Talk to our experienced bankruptcy lawyer today to know which property can be exempted under the law during your bankruptcy.
If it cannot be part of the exemption, then it will be going to the liquidation of your assets to pay off your creditors.
What If You Received It After the Period
It will not be part of your bankruptcy estate if you receive your inheritance after 181 days. That is, it will be yours to keep. Your creditors will not be forced to use it pay them off. But this is the case for chapter 7 bankruptcy.
For chapter 13, it may still be utilized in your three or five-year payment plan. That is, your trustee will include it as income. But, it will still hinge on whether or not it is exempt.
It can be confusing. That’s why we encourage you to hire a bankruptcy lawyer in Sherman Oaks to help you navigate the process and find out whether or not you can keep your inheritance. Contact Tenina Law today at (213) 596-0265.