What If During Bankruptcy, you recieve extra money?

February 1st, 2006 by Questions

I’m still trying to work things out with a creditor and one of my options is filing for bankruptcy. This problem has occured because my soon-to-be ex hasn’t paid any bills for the last six months. He doesn’t return phone calls from creditors/banks and they have started coming after me, as I am co-signer on a Line of Credit and a Visa with him. He has talked about filing for bankruptcy and what I’m getting is that I’ll have no choice but to file too. He doesnt pay child support (I’m in the process of changing that) because he was supposed to pay the bills instead. What I’d like to know, is if you recieve an inheiritance or a settlement that is enough to pay off the debt in full, can you pay out your bankruptcy once you’ve filed?

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One Response to “What If During Bankruptcy, you recieve extra money?”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

If you inherit funds while bankrupt, you are required to surrender the funds to the trustee. If you inherit enough money to fully discharge all of your debt, the trustee would repay all of your debt, and then apply to annul your bankruptcy, so that on your credit report it would appear that you were never bankrupt. If the funds come in after one party is discharged they are protected, but must be disclosed on the Income and Expense statement to the trustee and will be used when determining the other parties surplus income.

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