In Missouri, Will You Lose Your Inheritance If You File For Bankruptcy?

Kansas City Bankruptcy Lawyers, Troppito Miller Griffin, LLC

Most people do not think about losing an inheritance in bankruptcy. After your loved one has passed, loss of an inheritance to creditors only makes matters worse.

In Missouri, Will You Lose Your Inheritance If You File For Bankruptcy?

The first question is: When did the person giving you the inheritance pass away?

Missouri Inheritance and Chapter 13 Bankruptcy

  • The 180 Day Rule: Your inheritance can be collected against by creditors if the person leaving the inheritance passed within 180 days of your filing for Chapter 13 Bankruptcy.
  • Paying Back Your Debt: In Chapter 13 Bankruptcy, you pay back your debt through a structured repayment plan over 3-5 years. Your Inheritance will be used to pay any money you owe to creditors by increasing your monthly payment plan amount.

Missouri Inheritance and Chapter 7 Bankruptcy

  • The 180 Day Rule: Just as in a Chapter 13 Bankruptcy, if the person leaving the inheritance sum to you passed away within 180 days of the Chapter 7 Bankruptcy case filing, then the inheritance will be considered part of your Bankruptcy estate. You are then required to amend (update) your Bankruptcy forms and disclose the assets to the court and trustee. In this case, the inherited money will be distributed (given) to your creditors until all of your debts are fully paid or the inheritance is gone.
  • Exemption: You may be able to protect your inheritance after filing for Chapter 7 Bankruptcy if you can list it as an exemption (categories of property you are entitled to keep in Bankruptcy). Missouri has exemptions and one of our experienced Kansas City Bankruptcy attorneys can advise you after learning the details of your case.

Bankruptcy Planning with the Help of Troppito Miller Griffin, LLC

If you may inherit money or property, let us help you to plan your Bankruptcy so that you have the greatest likelihood of keeping your inheritance. We are trusted and experienced greater Kansas City Bankruptcy attorneys and we have the answers that you can’t know on your own. Give us a call today.

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