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  #1  
Old 01-24-2008, 01:50 PM
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Join Date: Feb 2004
Posts: 14

bankruptcy/foreclosure and inheritance issue


pa/nj/ny
question this scenario...
brother jason is in bankruptcy (7) in nj and foreclosure (home) in ny. these are in process.
then a long lost relative dies and leaves $ for him and me together. (less than $50,000) to split as per the will instructions. (some of which will go to a general-type lawyer for the inheritance as well)
questions: will the $ due to jason be sucked up by the bankruptcy?or by the foreclosure?
will this /and how will this affect me and my inheritance?
can jason 'drop out' of inheritance and thereby leave all $ to me? (he's ok with this as he'll probably end up living with me anyway and is willing to forfeit his half for my/both our benefit)
this involves three states - are there any legalities that may have been missed. i know nothing about this sort of thing. sometimes the lawyers (one for bankrupcty -his and one for the foreclosure his - and one for the inheritance ours) we're using are confusing and with so many issues involved at once i'm nervous. and they are costing a lot to ask too many questions of.
anyone here can clarify or advise would be appreciated.
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  #2  
Old 01-24-2008, 02:20 PM
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Join Date: Feb 2007
Posts: 4,978
His inheritance isn't directly attachable by the foreclosure.
It does become an asset in the bankruptcy proceeding.

Yes he can renounce his inheritance. The implications of that would have to be discussed with the lawyers (his bankruptcy and the estate lawyer would be good places to start).
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  #3  
Old 01-24-2008, 02:57 PM
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Join Date: Feb 2004
Posts: 14
Smile

thanks


for all info. we intend to formulate a list of questions to give to all the lawyers just to try to get them on the same page and get clearcut answers for liability purposes. in the interim the bankruptcy lawyer said to jason that 7 months (i think it was) after the bankruptcy case 'closes' that there could be no further judgements taken or given so he would be in the clear with $. however he was checking into whether they could come to collect from me if jas 'dropped out' before the seven months are up or if the $ comes in before the closing. i don't need/want trouble so this is very important from my liability angle. currently i have nothing to do with his troubles financially outside of this inheritance thing. wow - talk about bad timing huh? lol
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