Personal Bankruptcy Protecting inheritance from judgments or bankruptcy

[ilbsnu]

I am on the verge of having to file bankruptcy in the next 6 months. I owe about 75k and there may be judgments against me before then by credit card companies. My father has died and my mother (92) is in a nursing home and will be totally out of funds in 6 months. My siblings, not aware of my situation, have decided to sell off all our parents belongings and property before the nursing home takes it. The proceeds will be split between us kids at about 40k each. I, personally don't think I can hold off the creditor's judgments until I receive my share. I have a son who I could gift some of it to.

Do I file bankruptcy right away, or wait? Can I accept the cash before or after bankruptcy or have it somehow put in my son's name until this blows over? Can they confiscate my share? Will these funds be viewed as an inheritance? Is there an entity that could be created to protect those funds? What is your take on this?

 

[Michael Wechsler]

My take is that you had best speak to a lawyer / your siblings as soon as possible about planning going forward. Any assets you have (or which may be due and owing to you) can be targeted and you can't just gift away your money without the creditors seeking to "clawback" the money and objecting to the transfer. Your main problem is that this is your money now - it is not inheritance you are receiving after declaring bankruptcy. I'd say your situation is complicated and needs to be handled properly by a professional familiar with all the facts and not via free advice given online or generally. Best of luck to you.

 

[disagreeable]

Sounds like you children are about to commit a fraudulent act that might land all of you in jail. You need to consult a lawyer.