You do not have to incur losses. Up on bankruptcy are you be forced to sell your inherited house
Receiving an inheritance.
Financial planning is a very complex matter. Even carefully operated businesses can go bankrupt.
Bankruptcy: can you be forced to sell your inherited house.There are many routes to file a case for discharge for the debt you owe to people and find it impossible to pay back.
An inheritance may seem like a windfall at such a time, yet it comes with many implications. It comes as a mixed bag of emotions as property can be inherited due to some dear family members’ loss. If a property or house is inherited at such a time of grief and financial ruin, then you may find it difficult to deal with all this at the same time.
Have you declared bankruptcy? You need complete guidance and legal advice on the right method to discharge the bankruptcy process. The elder law is different and is meant to assist senior citizens. They must take expert guidance in case they need to declare bankruptcy. They often do not even understand the implications of having properties in their names and estate planning and may end up losing their assets in the entire process. They may also need advice if they want to leave some property for their family member who plans to declare bankruptcy.
Timing of the inheritance
The time of inheritance or the condition in which a person inherits property decides the way the inherited property will be treated. There is no one particular law that can apply to all the cases. Let us see some of the scenarios when a person is filing for bankruptcy and an inheritance. Keep in mind that the bankruptcy process concludes only when all the dues are discharged completely or paid up and the person has no more assets in his name.
The trustees of the bankruptcy can claim the property.
All bank accounts and property owned by a person filing for bankruptcy, wherever situated, at the date of the bankruptcy or may be acquired by or devolve before the bankruptcy trustees can claim their discharge. This is called bankruptcy estate. When people receive an inheritance, then it is treated as an asset. The inheritance is included on the date of death or announcement of a bequeath of will. So, it will be included in the estate, as mentioned earlier.
Inheritance Before the Bankruptcy process is over.
You need to disclose all assets, property, and income when you file for bankruptcy. It may negatively impact if you hide any inheritance that may be coming in while the process is still on. That is one reason people find it difficult to choose chapter 7 or chapter 13 to file for bankruptcy, as the latter process takes a long time to discharge. Under chapter 13, the trustees can claim an inheritance while the repayment plans are still going on. In chapter 7, any inheritance received 180 days after the process will be the debtor’s property and cannot be claimed.
Let everyone know
Another easy way is to let the family know before you file for bankruptcy. This way, people can change and modify the will and leave the property to a trust or group and transfer ownership of the property. The trust will take care of it and make sure that it does not end up in creditors’ hands. It involves proper estate planning.
You cannot hide the inheritance.
It is an offense to hide any inheritance while the process is on. Simultaneously, you cannot wait for a windfall to somehow pay back the creditors and bankruptcy discharge the process. You can, however, try to negotiate with the creditors about the future inheritance. The agreement may help you to keep some or all of the inherited property.
When the bankruptcy process is on
Any real property inherited before the complete discharge of the process becomes a part of your assets. Once this is informed to the judge, the trustee can decide to sell the property, and the amount can be paid to the creditors. This may help you make a fresh financial start and get a better credit score sooner.
If you inherit more than you owe, you can pay off most or all of the debt and cancel the personal bankruptcy process. You can have the bankruptcy annulled or canceled.
Even if the amount is less than what you owe, you can also try to negotiate with the creditors. Instead of going through the strenuous bankruptcy process, they may be happy to accept a little less amount and close the proceedings. It will allow you to pay back most of the credit and start again with a better financial record.
Suppose you inherit real estate after the stipulated period of discharge. Then you are fortunate and keep the property. You will be entitled to a property inherited as you have completed the process honestly. You can use it the way you want.
Bankruptcy may leave the person under severe financial strain and mental stress. It also affects the borrowing capacity in the foreseeable future. If you inherit a property during the case of personal bankruptcy is still in process, then consider yourself fortunate. You can choose to sell the house to pay back the creditors. You may not have much time, and that is when we can help you. Contact us by filling the form, or even better, call us now and let us help you find the best deal.
The legal process of bankruptcy takes some time to discharge. It has a direct impact on any inherited property that may be bequeathed to the debtor. The process can be filed under chapter 7 or chapter 13. That means that you need legal advise from experts and find the right solution. When you become entitled to a property, it will be included in the assets to pay back the creditors.