An inheritance can be deeply personal. Often it is the legacy left by a parent, meant to help propel children and grandchildren to better lives. The last thing you want is to be forced to surrender such a windfall to bankruptcy court.
Denver bankruptcy lawyers at George T. Carlson & Associates understand the complications that can arise when an inheritance is part of a bankruptcy – either before, during or after a client files for bankruptcy protection in Colorado.
Essentially, any inheritance awarded you within six months of a bankruptcy filing can be awarded to your bankruptcy estate for distribution to creditors. Without exemption – and without a fight – the court can seize such assets, auction them off or otherwise liquidate them – and use the proceeds to pay your creditors.
Inheritance and Denver Bankruptcy
There are any number of complicating factors – including whether the date used is the death of the person bequeathing the property or the date the property is inherited. Other issues that can impact inheritance and bankruptcy include:
- Proceeds of life insurance policies are exempt provided the policy states the proceeds cannot be used to pay the creditors of the beneficiary.
- Up to $60,000 in home equity can be exempt, as can proceeds from the sale of real property in some cases.
- Inheritance as part of a trust may be protected.
- It is your duty to disclose such inheritance even if your case has been closed and your bankruptcy has been discharged.
When filing for Chapter 13 bankruptcy protection in Denver, your inheritance can be used to determine how much money you have available to pay creditors under the repayment plan. Whether filing for Chapter 7 or Chapter 13, consulting an experienced Denver bankruptcy lawyer is the best course of action to fight for your rights and to ensure that an inheritance or other complicating factors doesn’t result in allegations of bankruptcy fraud.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
