If you are considering filing a personal bankruptcy, there are many factors that should be considered. The more time and planning you put into your filing, the greater your chance of success.
One factor many people do not consider is whether they will be receiving an inheritance in the near future. If an inheritance is a possibility, it is important to understand how the timing of your bankruptcy case could impact it. The date your bankruptcy is closed and the date the estate of your loved one is settled will not impact you. In contrast, your bankruptcy petition date and the date the deceased died are important.
If you inherit money or assets from the deceased within 180 days of filing a Chapter 7 bankruptcy petition, the inherited money or assets can be included in your bankruptcy case. In other words, the inheritance may be administered and used to pay your creditors.
In a Chapter 13 case, your inheritance will be handled differently. A debtor that inherits within 180 days of filing the bankruptcy petition will have the inheritance considered by the court in determining the amount the debtor must pay into the Chapter 13 plan to pay your creditors. In some instances, an inheritance that is received after the 180 day time period has run may still be considered property of your bankruptcy estate.
The above is a general summary of what should be considered in determining the best time to file your bankruptcy case. If you believe you may be inheriting a substantial amount in the near future, it is imperative that you contact us to consider all of your legal options.
The legal team at Faro & Crowder is ready to help. Our office is located in Melbourne, but we proudly serve businesses across the State of Florida.