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Bankruptcy Law/Inheritence and Chapter 13

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Expert: - 8/10/2009


Question
My father owes me a substantial amount of money for living expenses due to the fact that I agreed to allow him to live in my home for the last 4 years. He had originally agreed to pay me a certain amount of money each month but had only done so for a part of the first year. He has recently received an inheritance from my grandmother and is in the process of filing for bankruptcy in Ohio. My question is whether or not he is allowed to pay me the money that he owes me from the inheritance since I am also one that he owes money too?


Answer
I'm not sure what you mean by "in the process" of filing.   If he's already filed a Chapter 13, then you can file a claim with the bankruptcy estate and you will share pro rata with the distribution to unsecured creditors.   If he repays you within one year prior to filing the Ch. 13, then technically you can be sued to recover the money he repaid you under the bankruptcy preference statute (11 USC 547).

He can always pay you in full after the bankruptcy case is completed.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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