Legal Question in Bankruptcy in Louisiana

Bankruptcy and Inheritance

A person inherited a home and 10 acres of land on his father's passing, he sold it for peanuts to get it out of his name while he files bankruptcy. As soon as his bankruptcy is legally filed/completed he will receive between 20,000-30,000 dollars in inheritance money from his dad's estate being setttled. Can he legally accept this without his creditors being made aware of possible income to him? I know he has no intention of making them aware, can the information be passed along to them someway?


Asked on 3/15/00, 4:32 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Bankruptcy and Inheritance

The sale for "peanuts" is a fraudulent transfer that can be avoided by the bankruptcy trustee. Any inheritance that a debtor becomes entitled to receive (i.e., the person dies) prior to 6 months after the bankruptcy filing is an asset of the estate. Failure to schedule it (if the person died before filing) or advise the trustee (if the death occurred post-petition) is bankruptcy fraud for which the debtor could go to jail. Moreover, unscheduled assets are always part of the bankruptcy estate and can be taken by the trustee at any time, even after closing the case.

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Answered on 3/24/00, 8:23 am


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