what happens if you file bankrupt and then come into some money do you have to hand over the money to the trustee or can you pay off the amount is owed? does this change with a propsal?
inheritance and bankruptcy/proposal
Posted on Friday, November 21, 2008
posted by Questions @ 8:28 am
1 Expert Comment:
At December 15, 2008 |
4:16 pm
, Barton Goth, Trustee in Bankruptcy Said...
If you receive an inheritance while you are in a bankruptcy you loose those funds. The money should be paid directly into the trustee’s office and will ultimately be distributed among the creditors. Failure to provide these funds will result in you not be discharged from bankruptcy and not being cleared from your debts.
If you file a proposal this changes as the monies are not immediately lost. However, if you know you are going to receive those monies and it is certain they will be coming to you in a short time, this is a something that must be disclosed and factored into the proposal itself. If you fail to disclose this the proposal would be based on fraudulent information and therefore would be invalid.
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