Inheritance and Bankruptcy
When a family member passes away, grieving relatives and friends often find themselves sorting out the details of the deceased person’s estate. These duties usually include handling details of the burial and memorial service, as well as executing the person’s will. Beneficiaries of the will may receive property or money, and can usually do with it as they please. For persons going through bankruptcy, there are special considerations to take when it comes to receiving money or property through inheritance.
Bankruptcy proceedings require applicants to list all of the assets they have and state the specifics of their financial situation. If a person receives money or property through inheritance, their situation may be drastically altered and may have an effect on their bankruptcy case. If you have any questions regarding inheritance and bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.
Inheritance Requirements
It is important to note that persons who receive inheritance after filing for bankruptcy:
- Are required by law to list any money or property received
- May be accused of bankruptcy fraud if they fail to report inheritance
- May find money deducted from the inheritance to repay creditors
- May be forced to relinquish assets under federal inheritance tax laws
- Inherited assets may be liquidated to pay creditors
It is important to note that failure to report inheritance may be considered to be bankruptcy fraud. Any attempt to conceal assets during bankruptcy may be punishable by law and should be avoided at all costs.
Contact Us
For assistance with your bankruptcy case, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 today.
