The phrase, “bankruptcy” can sound intimidating. Fortunately, with a knowledgeable bankruptcy attorney on your side, you have nothing to worry about. In fact, filing for bankruptcy can be exactly what you need to get back on your feet again.
Most questions and concerns about bankruptcy have to do with the assets you are about to keep, and the assets you are required to give up. Generally, most people’s main concern is whether they can keep their homes. However, there are several other valuable assets that people are concerned about keeping, such as their car, their jewelry, or their inheritance.
If you have recently received an inheritance and are filing for bankruptcy, there are several things you should know about how the process works. If you considering filing for bankruptcy and have recently received an inheritance, please read on and speak with our experienced firm to learn more about the process and your legal options going forward:
What is the 180-day rule?
The 180-day rule simply states that in the first 180 days of you filing for bankruptcy, any income you receive will become part of the bankruptcy estate. Unfortunately, this includes inheritances. This means that if a loved one passes away and you receive an inheritance within 180 days of filing for bankruptcy, the inheritance will become part of the bankruptcy estate. However, it is also worth noting that if you receive an inheritance 181 days after filing, or any time thereafter, the inheritance shall be exempt from bankruptcy.
Do I have to notify the bankruptcy trustee of my inheritance?
Yes, you do. Though it may be tempting to withhold certain information out of fear that you may lose out on the inheritance of which you are entitled, you cannot do so. If this has happened to you, you need to speak with a skilled bankruptcy attorney as soon as you can. He or she will help you notify the bankruptcy court and tell you about the specific forms you will need to do so. Do not hesitate to reach out to our firm. We are here to help.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.
