You may be able to keep an
inheritance or funds from a lawsuit if you know how to exempt it or if you know how to
time the filing of your bankruptcy. Whether you file for a Chapter 7
or a Chapter 13 bankruptcy can also determine whether or not you keep property.
You start life over after with a certain
amount of property by filing exemptions to keep it. Exemptions are large under Kentucky and
Federal rules. But, you have to know how to file bankruptcy and also when
to acquire
property. Inheritances acquired within 180 days after filing a
petition are property of the estate under 11USC §541(a)(5)(A) in a
Chapter 7 case.
For Chapter 13 cases, the estate includes
everything in §541, plus all property acquired by the debtor after
filing a Chapter 13 but before the Chapter 13 is closed under 1306(a)(1).
§1325(b) requires all of a debtor’s “disposable income” be applied to
make payments. Property acquired during a Chapter 13 may be used to pay creditors
if it can't be exempted.
Property includes other property you
acquire such as:
-
lottery winnings – In re Koonce, 54 BR
643 (Bankr DSC 1985)
-
law suit settlements, insurance settlements, –
In re Nott, 269 BR 250, 257, 258 (Bankr. MD Fla 2000) and In re
Euerle, 70 BR 72 (Bankr DNH 1987) and
-
large gifts or loans – Doane v Appalachian
Power Co, 19BR 1007 (Bankr WD Va 1982)
The Bankruptcy Manual discusses how to
file for bankruptcy. Download your free how to file for bankruptcy manual.
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