Question
How will bankruptcy affect distribution of property in an estate?
My sibling and I were getting property from my grandfathers will and we are supposed to co own this business. However, my sibling is filing for bankruptcy and can't take care of the payments. Is there a way I can remove their rights even though it is stated in the will? I don't want this property to go out of business, because of the bankruptcy.LawQA.com Answer Library
Answered By: AZ Law Group of Trezza & Associates
When he files bankruptcy the trustee stands in his shoes and can do anything your sibling could legally do like liquidate his share of the business.
Answer Applies to: Arizona
Replied: 10/15/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Arizona
Replied: 10/15/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Heupel Law
The best thing to do is to purchase her interest before she files bankruptcy. That way, you can own 100% of the business and her bankruptcy won't affect you. Otherwise, the trustee for the bankruptcy court can look to sell your sister's half interest.
Answer Applies to: Colorado
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Colorado
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Bankruptcy Law office of Bill Rubendall
Property received from inheritance within 180 days of filing a bankruptcy petition is property of the estate. The trustee will administer it. Do not transfer property prior to filing because that will be a voidable preference and the trustee will recover it. Consult with an attorney to see if this asset can be claimed exempt. You also may want to consider filing chapter 13 in order to keep the inheritance.
Answer Applies to: California
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Charles Schneider, P.C.
No as it would be a fraud upon his creditors.
Answer Applies to: Michigan
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Michigan
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Janet A. Lawson Bankruptcy Attorney
You are going to have to work this out with the Trustee in bankruptcy.
Answer Applies to: California
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Robert Peters, P.A.
You have a complicated situation and really need to consult with a bankruptcy attorney. Your sibling needs to be careful filing a bankruptcy when he has a right to inherit from a will. Anys such right may be a part of their bankruptcy estate. Proceed with caution. I have attached a copy of my book on bankruptcy which should help also. Good luck.
Answer Applies to: Florida
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Florida
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Law Office of Darren Aronow, PC
Your sibling could sell the rights to you, but if they file bankruptcy shortly after, the trustee may be able to seize their share if they believe it was sold for less than market value and if they gave up other assets in this sale.
Answer Applies to: New York
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: New York
Replied: 10/13/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Ashman Law Office
You probably can't prevent it. An inheritance is part of the bankruptcy. Discuss it with your lawyer. He may have ideas to help.
Answer Applies to: Georgia
Replied: 10/12/2011
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Answer Applies to: Georgia
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Grace Law Offices of John F Geraghty Jr.
His interest in the business may be available to trustee in Bankruptcy. You should think about forming a corporation or buy out his interest.
Answer Applies to: Georgia
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Georgia
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: The Schreiber Law Firm
You say they "were getting" does that mean your grandfather is deceased it has already been distributed to you and your sibling, or is your grandfather still alive or is deceased but the business property still needs to be distributed to the tow of you. If it has been distributed and your sibling is now an owner, their interest in the business becomes property of the bankruptcy estate and the bankruptcy trustee can sell that interest to you or to anyone else who may bid for its fair market value, whatever that may be. If it has not been distributed and your grandfather is deceased, the above still applies. If he is still alive, then the bankruptcy trustee would have no interest in the business until your sibling has a right to the business through the will, but if your grandfather dies within 6 months after the filing of the bankruptcy, the trustee gets your sibling's part of the business and the sale of their interest also applies then.
Answer Applies to: California
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Law Office of Harry L Styron
The answer depends on how and when the property is left to you and your sibling. What does the Will specifically say with regard to the bequest? When did your grandfather die, and when did your sibling petition the bankruptcy court? What chapter of the bankruptcy Act is your sibling filing under, 7 or 13? You need to bring all the details to an attorney so that the situation can be correctly analyzed.
Answer Applies to: California
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: California
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answered By: Goldsmith & Guymon
Your sibling can disclaim their inheritance if they have not yet received it. I highly recommend discussing this with an attorney.
Answer Applies to: Nevada
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
Answer Applies to: Nevada
Replied: 10/12/2011
Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.
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