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chpt 13/ possibly buying car w/cash questions/help


shamus
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happy thanksgiving everyone!..my bankruptcy is finally nearing a end..pending review now,and after research, ive heard a month or so for discharge to become final..so after alot of reading and researching and guess looking for reassurance..

 

my question being,long story short...my mother in law passed,and we are beginning to receive the first of several beneficiary checks,.and have talked of purchasing a car( we've had 2 hondas for 15 years now)..so im wondering as long as i dont incur anymore debt i can pay cash for whatever,is that correct?...spent alot time researching this online the last few weeks..and seems to be the general consensus...is that accurate?..will be contacting my attorney monday after the holiday weekend of course..

 

can anything bad come from this with the trustee?,since this is post filing,do i need to stay within a certain amount?..any help or insight deeply appreciated...thanks in advance

 

 

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happy thanksgiving everyone!..my bankruptcy is finally nearing a end..pending review now,and after research, ive heard a month or so for discharge to become final..so after alot of reading and researching and guess looking for reassurance..

 

my question being,long story short...my mother in law passed,and we are beginning to receive the first of several beneficiary checks,.and have talked of purchasing a car( we've had 2 hondas for 15 years now)..so im wondering as long as i dont incur anymore debt i can pay cash for whatever,is that correct?...spent alot time researching this online the last few weeks..and seems to be the general consensus...is that accurate?..will be contacting my attorney monday after the holiday weekend of course..

 

can anything bad come from this with the trustee?,since this is post filing,do i need to stay within a certain amount?..any help or insight deeply appreciated...thanks in advance

 

WHOA.  If your BK is not completed and at least 6 months post discharge then ANY money you receive has to be reported to the trustee.  You need to be speaking to your attorney about this inheritance before you make any purchases and ensure you are in compliance with the BK laws.

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While the OP needs to run this by his lawyer, I'd say it's of no issue since his wife isn't part of the bk.

However, this post isn't correct:

WHOA. If your BK is not completed and at least 6 months post discharge then ANY money you receive has to be reported to the trustee. You need to be speaking to your attorney about this inheritance before you make any purchases and ensure you are in compliance with the BK laws.

The code actually states only 3 instances where money recived post filing needs to be reported and, one of them is an inheritence.Also, the time frame is, within 180 days of the filing date-not, 6 months from the discharge date.

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The code actually states only 3 instances where money recived post filing needs to be reported and, one of them is an inheritence.Also, the time frame is, within 180 days of the filing date-not, 6 months from the discharge date.

 

While this is not an issue for OP, the above is not totally correct as it relates to a Chapter 13. There is a split in authority as to whether the rights to an inheritance that arises more than 180 days after the Petition date is property of the Chapter 13 Estate and the answer to that question may turn on the timing of the confirmation of the Plan.

 

Section 1306 includes, as property of the estate, all property listed under section 541 AND all after-acquired property. So, if OP's wife were a debtor in the Chapter 13, the inheritance may or may not belong to the creditors, depending upon how his jurisdiction interprets 1306 as it relates to the timing of the right to the inheritance and vesting of property upon Plan confirmation.

 

Again, this is not an issue for OP since wife is not part of the 13.

 

As to OP’s question, I see nothing stopping his wife from purchasing a vehicle with her inheritance money.  Of course, OP should consult with his attny before doing anything.

 

Des.

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