inheritance and bankruptcy
February 23rd, 2008 by Questions
My husband went bankrupt should be discharged in May. If he receives an inheritance I know he has to surrender the money to the trustee. My question is does he have to surrender items like a car or house or just cash? If he inherits enough money to pay off his creditors does the bankruptcy still stand or is it wiped out?
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February 25, 2008 at 6:34 am, A licensed trustee said:
If your husband has been named as a beneficiary in a will and the person dies prior to your husband’s discharge then your husband is required to inform his trustee. If the item(s) your husband is expected to receive have a monetary value then his trustee will be required to either seize and sell the items or collect an equivalent amount of cash from your husband.
If your husband receives sufficient funds to repay his debts in full, he may apply to the Court to have his bankruptcy annulled (removed from his record).
I suggest you and your husband go and speak to his trustee about his situation and the possibility of an inheritance.