Getting An Inheritance During A Bankruptcy Filing
Those individuals who receive an inheritance after they file for bankruptcy should seek legal counsel from a qualified bankruptcy attorney to determine how additional assets of money or real property will be handled. When cash-strapped consumers come into large sums of money, it can be a cause to celebrate or cry. Federal inheritance tax laws prohibit debtors from concealing assets, including monies or property legally and rightfully willed to them. The irony is that if the inheritance had been awarded prior to making the decision to file, the debtor may have had sufficient assets to cover outstanding debts. Nevertheless, it’s a case of too little, too late and now the courts have the last word.Bankruptcy is a legal means of providing consumer debt protection for individuals seeking relief from overwhelming financial woes. Without proper monetary management and sound financial planning, anyone is subject to become bankrupt. Unless an individual has a contingency fund, an unexpected illness, chronic unemployment, or credit card abuse can all push a consumer over the edge and into bankruptcy filing. U.S. Bankruptcy law does not strip an indebted individual of all assets, but there are some concessions that have to be made to satisfy creditors. The law allows debtors to retain Social Security payments, VA benefits, unemployment compensation and certain property deemed exempt by the court. However, when it comes to an inheritance after bankruptcy or other windfall gain, the courts will exercise the right to legally seize additional income to fulfill debtor obligations. When in this situation get counsel to try and protect your new assets.
