Bankruptcy and Inheritance
Individuals who file for Chapter 7 bankruptcy may have some of their assets liquidated in order to pay off their creditors. Usually, there are certain exemptions available for some assets, which means that certain types of property cannot be liquidated to pay lenders. Unfortunately, inheritance is not exempt.
There may be ways for you to keep your inheritance money, but you may need the help of a lawyer. If you are headed toward bankruptcy and are expecting an inheritance soon, contact the West Palm Beach bankruptcy lawyers of Eric N. Klein & Associates, P.A., today at 561-353-2800.
Bankruptcy Laws Regarding Inheritance
Bankruptcy laws clearly lay out the rules regarding inheritance. Typically, individuals who receive an inheritance before they declare bankruptcy or who receive an inheritance within 180 days of filing must report this money to the bankruptcy court.
Since this forces individuals to give up their inheritance, those who face bankruptcy may want to plan ahead when they expect to receive an inheritance. Ways to do this include:
- Disclaiming inheritance
- Setting up a spendthrift trust
- Being written out of a will
These are all perfectly legal options that may allow you to receive your inheritance after the court finalizes your bankruptcy filing. However, these options require careful legal planning that is often difficult to accomplish without the help of an experienced bankruptcy lawyer.
Contact Us
Bankruptcy does not have to claim your inheritance. If you have received an inheritance or expect to receive one and are facing bankruptcy, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800.
