Inheritence

What is the name of your state? IL

I am thinking of filing chapter 7 or would like to, but I have an inheritence of 26,000.00 through me. It was a Check handed to me that I cashed and inserted into a bank account. It was almost a year ago. And I let my Uncle Have all of it. I am married and have about a 20k debt load. I am sure this inheritence completely disqualifies me from doing a Bankruptcy. I do not know if it qualifies for an exemption or not?

The payment to uncle could delay filing (one year payments to insiders), but nothing else will hold you up.

What is your income and expense? No reason to file if your only option is BK 13 with 100% payback, except if you are lossing your house.

Stop paying today, to save for attorney.

19k a year

and expenses are right now more than I have coming in.....

Originally posted by cantcatchabreak
What is the name of your state? IL

I am thinking of filing chapter 7 or would like to, but I have an inheritence of 26,000.00 through me. It was a Check handed to me that I cashed and inserted into a bank account. It was almost a year ago. And I let my Uncle Have all of it. I am married and have about a 20k debt load. I am sure this inheritence completely disqualifies me from doing a Bankruptcy. I do not know if it qualifies for an exemption or not?

May I ask why would you let your uncle have it? Sounds like you need it more. You must have a generous heart. I am sure though that a bk court would want to know what happened to all the money. And just giving it away to someone may not look good on your behalf even if there is a good reason. It may look more like you are trying to hide it and try to file which could be constituted as fraud. Good Luck to you.

Because it was his inheritance, I just cashed the check and deposited it in my account.

[nailtech]

Not that you have to explain, but I was confused as to why you would give away 26K and having 20K in bills, when you could have paid out your debts and still have 6K left over and save your credit…

I’m with slvrneon it could look like fraud to a trustee and put you back to where you started with nothing and still owing everyone…


cantcatchabreak sounds like you had one, and gave it away... JMO...

[nailtech]

Well you were posting while I was posting, and I didn't see the 'almost Year ago' part anyway… most things in BK are from 6 months to current, to future (like in the next year)… someone will correct me if I’m wrong…

what do you consider 'almost' a year ago?

and it would be best to go do a free consultation with a BK attorney they can better advise you knowing/having all the details in hand...

I consider a year ago November. We are about 3/4 through september, so october makes it 11 months .....

[nailtech]

in my opinion, it should never be brought up in the BK matrix(papers).... the only thing a BK trustee asks are you going to be getting an inheritance in the near future or receive money... they want to know about payments or charges made within the last months.... you should be clear, I do suggest you do a google search in your area and find a BK attorney (BK is all they do)..... Or by word of mouth of someone who knows someone who has used one, and then you use them if they have had good results.... BK attorneys usually do a first ‘free’ consultation.... you can then bring that question up to him/her, but I’m almost positive you're safe with the inheritance...

Good luck to ya...

[Ladynred]

Wait - this whole thing is a non-issue if ALL you did was cash a check FOR your uncle. If, as you say, the inheritance was NEVER YOURS to begin with, I don't see how just doing a pass-through of HIS inheritance thru your bank would be a problem.

Do you have proof that it was NOT your money to start with ??

OK, here is the troublesome scoop. The check was in my name as he " refused " inheritance, what he wanted was to funnel the funds through me. Now I will not say anything about this,at the bk and if it becomes an issue I will tell and show all where it was removed from my account by him in his state. and I can probably get a signed "confession" (ha-ha) statement from him stating all funds were procured by him from me. Anyway, I want to thank all of you for your assistance, not just to me, but to the thousands you help daily here at this site. I seen answer ids all the time with the same names being asked questions by diffy ids . THANK YOU...

I've been researching Chapter 7 today and happened to find that they will ask if you have disposed of assets within the past year. You would need to consult with an attorney, but perhaps if you return the money to your uncle and have him give a sworn statement, they may excuse that one. Worth a try.

He has the money, so it is disposed of long ago.