Ask a Lawyer - Archive

The usual rule is that the bankruptcy estate, the sum of your assets and legal rights, is measured as of the day you file your case. If you are then entitled to receive money, such as a tax refund or an inheritance, it is property of the estate whenever you actually get it.

You can use available exemptions to protect such assets from your creditors, depending on what exemption systems are available in your state.

There are three exceptions to the rule that limit property of the estate to what you own as of the date you file: inheritances, life insurance proceeds, and marital property settlements that you become entitled to receive within 180 days of the filing. These kinds of payments, or rights to payment, are part of the bankruptcy estate if the event that entitles you to the money occurs in the 180 days after the filing.

Your bankruptcy attorney can advise you about how to proceed.