Can My Creditor’s Reach my Inheritance?

Possibly.  The bankruptcy code stipulates that an inheritance bestowed upon a debtor within 180 days of a bankruptcy filing will become the property of the bankruptcy estate. The clock starts on the date of death of bequeather.  Additionally, in a Chapter 13 the inheritance is factored into the creditor payments but not automatically distributed out.  Conversely, in a Chapter 7 an inheritance received within the 180 day window is a non-exempt part of the estate and could be distributed at the trustee’s discretion. 

If you have recently received an inheritance, or are expecting one, it is imperative that you contact the Fears | Nachawati Law Firm with your bankruptcy concerns.