We’ve written a series of blog posts answering questions regarding the financial impact of bankruptcy and family issues. Call (262) 827-0375

Bankruptcy Court: Inheritances

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Milwaukee bankruptcy inheritanceIt’s not uncommon for people to receive inheritance money when a loved on passes away. For those that have filed or are considering filing for bankruptcy, the question of “what will happen to that money?” will generally come up. This situation will affect the way the Milwaukee bankruptcy court views your case. Attorney Michael Burr is here to help you find the optimal solution to these types of questions. Here are a couple general circumstances to consider when it comes to inheritance dollars.

Whether Chapter 7 or Chapter 13, inheritance money received during your bankruptcy will generally be considered an asset. Assets can be protected in some cases but will often become part of the bankruptcy estate in some way or another.

Chapter 13

When you file for Milwaukee Chapter 13, your property is not liquidated as in a Chapter 7. In return, however, you’re required to pay back your debts through a repayment plan. Inheritance money is considered an asset, so trustees will generally want you to pay more to your unsecured creditors. In other words, inheritance money can increase the amount of your monthly plan payment.

The 180 Day Guideline

For Milwaukee Chapter 7 cases, any inheritance money you acquire within the first 180 days after filing would be considered property of the bankruptcy estate. This means the nonexempt portion of the money you receive would be taken by your trustee and distributed to any unsecured creditors.

In Chapter 13, you generally get to keep your assets. However in these cases you would still be required to pay. A general rule of thumb is that you’ll be required to pay at least the nonexempt portion of the inheritance.

If you receive inheritance money after the 180 day period in a Chapter 13, most trustees will argue that you should be required to pay it into your plan.

If you’re thinking about filing for bankruptcy and have received or will be receiving an inheritance, contact the experts at Burr Law Office. We’ll help you figure out what the best steps are and how to work with the Milwaukee bankruptcy court to settle your case.

How to Continue With a Bankruptcy Petition During Divorce

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Financial difficulties can put strain on a marriage and contribute to the decision to file for divorce. Couples who decide to file for divorce in the midst of filing for bankruptcy may face complications in terms of discharging their debts and reporting their assets. For this reason, couples filing for both at the same time need to take additional steps to ensure that this process goes smoothly.

Consult with an Attorney

Filing for divorce may affect your bankruptcy filing status and your ability to meet the obligations in a Milwaukee Chapter 13 repayment plan. That’s why it’s best to seek the help of an attorney who has significant experience with bankruptcy law. You may need to consult with both a divorce attorney and a bankruptcy attorney throughout the course of your case. Your attorneys can help each other determine whether or not it’s in your best interest to proceed with divorce before your Chapter 13 petition is resolved.

Establish Divorce Settlement

You should try to create a divorce settlement agreement with your spouse that determines how the monthly payment plan of a Chapter 13 petition will be divided between you. Failing to reach an agreement means that you may have to handle the matter in court, which may reject the notion of designating one spouse as solely responsible for the debt.

Talk to Your Trustee

You need to talk to the trustee assigned to your case about your plans to file for divorce. Your trustee receives monthly payments and allocates them to your creditors according to your payment plan, so he or she will need to review your proposed divorce settlement and individual spousal incomes.

Call (877) 891-1638 to discuss your filing options with Milwaukee bankruptcy attorney Michael Burr. We provide affordable services to help eliminate or consolidate your debts. Our goal is to help you find permanent relief from your financial hardship and secure a positive financial future.

A Married Couple’s Guide to Filing Bankruptcy

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Wisconsin is known as a community property state. This means that any assets or debts that a married couple collects during marriage belong to both of them. Even if the wife is a stay at home mother, her husband’s credit card debt burden legally belongs to her. When filing for Milwaukee bankruptcy, couples need to consider whether the debt they need to discharge was incurred before or during their marriage.

Filing Jointly

Most often, if you and your spouse have debt—from remodeling a home, getting behind on your mortgage payments, or racking up credit card bills—you will jointly file. This means that both of your “estates” will be financially affected, and creditors can look to repossess or sell property that belongs to both of you or was acquired during marriage. Wisconsin’s community property laws mean that you and your spouse will be affected evenly. Depending on your situation, this option will protect most of your assets and help you discharge more debts than with an individual petition.

One Spouse Filing on His or Her Own

Sometimes, one spouse incurs a great deal of debt in his or her name only, or incurs the debt in its entirety before marriage. If so, he or she can file without requiring their spouse to do so as well. However, the courts will generally require information from the spouse about salary and other assets of the non-filing in order to determine whether or not the filing spouse qualifies for Chapter 7 or Chapter 13 bankruptcy.

If you are a married couple looking to Milwaukee bankruptcy as a solution to your financial burdens, contact Burr Law Office today. We can help apply the U.S. bankruptcy law to your family’s specific financial situation. Call (262) 827-0375 to see how we can protect your assets while discharging debt! If you are in Milwaukee and looking for a bankruptcy lawyers near me, call Burr Law today.