Chapter 7 Bankruptcy: Inheriting money
Once you have filed a Chapter 7 bankruptcy you are told that if you come into any large amounts of money to let your attorney know right away. If you come into any type of windfall, the trustee has to know about it for 180 days after you file your case. So if you inherit some money or you win the lottery while you are in a Chapter 7 bankruptcy, you must let your bankruptcy attorney know immediately. It all depends on your situation, but it could be possible to protect the money, depending on how much you actually receive from the windfall. If you receive a large amount of money while you are in your chapter 7 bankruptcy, it is also possible that you will have to pay back all of your unsecured creditors up to the amount that you owe your creditors. If you receive an amount that will pay your creditors off and you still have more money left, you will get the money back that doesn’t pay the creditors. You can’t pay back more than what you owe, so the Chapter 7 trustee won’t keep the left over amount. Contact your bankruptcy attorney immediately with any further questions or concerns.
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