Will I Lose My Inheritance if I Claim Bankruptcy?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

inheritanceYou have to be aware that when you are filing for bankruptcy that you must declare all of your assets. Your inheritance is classed as an asset. If you know that you are going to be receiving some money through an inheritance, or if you receive money through a trust you must declare this. That doesn’t mean that you have to list that you are the beneficiary of monies to be received in the future, as you are not able to predict when this may be.

Assets and Income

If you receive an inheritance prior to filing for bankruptcy, you have to be cautious as to how you use this money. If you are contemplating bankruptcy at the same time you have received this inheritance then you really should discuss this with a bankruptcy attorney. This expert can advise you as to how to use your money and how it could affect your bankruptcy action should you decide to go ahead with it.

Most probably you are not getting enough money that would clear your creditors or significantly get you out of the financial situation you are in. If that were the case there would be no need to go bankrupt. You may have the option to put it into a retirement fund, or purchase some life insurance. You will be basically held accountable for the way you spend the money if you decide to go ahead with your Houston bankruptcy. It is acceptable to spend it on needs for you and your family, however you cannot be careless with it.