Let’s say you’re expecting an inheritance in the near future; however, you’re in a tight spot right now. Expecting an inheritance is great and you’re very fortunate to have someone special bestow some, if not all of their assets to you upon their death, but that expected inheritance can’t help you now when you’re in debt.
What should you do? File for bankruptcy now? Or, wait it out and pay off your debts when you receive your inheritance? This topic may seem random, but we’ve come across it enough that we feel it deserves a post about it. If you are in over your head with debt but you expect to receive an inheritance in the not too distant future, it may make sense not to file for bankruptcy, which we’ll explain.
Suppose you were a beneficiary in a loved one’s will or trust and their case is in the middle of being probated. Upon the decedent’s death, you became entitled to certain assets; for example, cash in bank accounts, a home, land, investments, life insurance, or a substantial retirement account.
There is a good chance that it will take six to twelve months for the probate court to process everything (if not longer), so it could be some time before you receive your inheritance. If you file bankruptcy and while the bankruptcy is pending in the courts and you receive your inheritance, the bankruptcy trustee can use your inheritance to pay off your creditors – not very appealing.
Are You Expecting an Inheritance Soon?
If you expect an inheritance in the near future, you should consult with a York bankruptcy lawyer from our firm about your specific circumstances before you decide to file for bankruptcy. We can go over your situation and help you decide what the best course of action would be given your situation.