Peoria, AZ asked in Bankruptcy for Arizona

Q: We filed for CH 13 in August, my wifes mom just passed and left an inheritance, what do we do?

Can we pay current bills with it? or are we required to turn it all over? Can we pay bills and submit the balance...please advise.

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2 Lawyer Answers
David Earl Phillips
David Earl Phillips
Answered
  • Bankruptcy Lawyer
  • Nashville, TN

A: Generally, the inheritance will be property of the bankruptcy estate. If you have a lawyer you need to talk with them about what your local court does in these cases. It probably depends on how much you are talking about. If you do not have an attorney I would suggest you call the trustee and ask what you are to do. I would not spend the money until you speak with someone first to avoid any problems. Hope it works out. Good luck!

Mallory Powers
Mallory Powers
Answered
  • Bankruptcy Lawyer
  • Phoenix, AZ
  • Licensed in Arizona

A: Since it sounds like your wife's mother died within 180 days of your bankruptcy filing, the inheritance is likely property of the bankruptcy estate and required to be paid over to your Trustee for the benefit of your creditors. To avoid any accusations of fraud or concealment, you should contact your Trustee immediately, or your attorney if you have one. If you do not have an attorney, you may want to seek the advice of a knowledgeable bankruptcy attorney that can discuss your options with you.

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