Expert: Terry Leeders - 9/28/2008

Question
A relative died several months before I filed bankruptcy.  I found out later that I may receive an inheritance.  At the time filing and at the time of my hearing it was unknown if there would be any money to be received.  If there is, do I have to turn this over to my creditors?

Answer
Inheritances have to be disclosed to the trustee and court for 6 months after you file the case.  Provide this information, and the trustee will decide (based on your allowable state/federal exemptions) if they want to liquidate the inheritance to pay to your unsecured creditors.  Failure to report this can result in your discharge being revoked.