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I would suggest discussing this with a Bankruptcy attorney rather than on an internet forum as this would be a special case in dealing with the trust. That said, I would suspect that because the trust is a separate entity, it would not be affected by the bankruptcy but one or two distributions may end up doing to the creditors. Again, speak to a lawyer as this would be a special situation.

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It will depend upon the terms of the Trust.  If there is a valid spendthrift provision 11 USC 541(c)(2) should apply. Next step is to meet with a qualified attny.  Bring the Trust documents with you.  If you do not have them, make sure the Trust administrator is available for a phone call with the attny.  Regardless, you may want to stay away from Chapter 7.


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