Clarksville, TN asked in Bankruptcy for Arizona

Q: Inheritance question during chapter 13

I am 3 years into Chapter 13 case, 2 years left. My plan base shows as $22,000 so about $10,000 left to go for discharge. This amount is for secured creditors only, unsecured showing as not receiving much of anything. My father is ill so wondering how that works if I was to get inheritance? I have many unsecured creditors. So let’s say I received $50,000 would the trustee take just the balance of plan base ($10k) or the whole thing to pay some unsecured creditors? Unsecured is about $30k. I’m in AZ . Thank you in advance.

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1 Lawyer Answer
Diane L. Drain
Diane L. Drain
  • Bankruptcy Lawyer
  • Phoenix, AZ
  • Licensed in Arizona

A: I assume you do not have an attorney, but if you do you must contact them for guidance. Generally, in chapter 13, any inheritance goes to administrative claims, priority debts, creditors that filed proof of claims, then the debtor.

I hope this is helpful.

Note - if you do not have an attorney it would be wise for you to talk to a volunteer attorney at the Arizona Bankruptcy Court's Self-Help Center.

1 user found this answer helpful

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