When you file for Chapter 7 bankruptcy, most of your assets become part of the bankruptcy estate. But life doesn't pause while you're waiting for your debt to be discharged. In the days that follow filing, you may acquire property or assets through an inheritance that you weren't expecting. For those assets, the 180-day rule applies. If you do inherit or anticipate inheriting any property, it must be disclosed.

At the Craig Black Law Firm, we know just how complex bankruptcy law can be. I work directly with each client, even personally picking up the phone when you call our office at 678-888-1778. Call me today or complete this confidential contact form to find out how I can help with your bankruptcy.

What Is the 180-Day Rule?

Money can come when you least expect it. But when it happens after you've filed for Chapter 7 bankruptcy, things can get complicated. You're required to list all your assets and income when you file, so what happens if you receive a large sum of money in the months following?

The 180-day rule is written into the bankruptcy code to address assets acquired after a Chapter 7 filing. For 180 days, any inherited property you acquire become part of the bankruptcy estate. The assets in your bankruptcy estate can be used to pay off creditors, so new assets will also be used to pay off those creditors.

Handling Incoming Assets

Inherited money and property are all subject to the 180-day rule. You'll need to report this type of change according to your local bankruptcy court's policies. Typically, this just requires submitting the updated information as an amendment to the original form.

It's vital to follow the 180-day rule. If you receive assets after filing and fail to disclose them, your discharge could be revoked, and you could face fines and even criminal charges. The good news is, once the 180 days are up, any assets you receive will be yours to keep.

180-Day Rule Exemptions

Assets received after filing for Chapter 7 don't always become part of the bankruptcy estate. This varies from state to state, and some states allow wildcard exemptions. 180-day rule exemptions only apply to inherited property.

How does this apply to post-Chapter 7 assets? If the income is from a retirement fund, unpaid wages earned before filing, or government benefits, it may be exempt. An attorney can help you work to keep the funds out of the bankruptcy estate when possible.

Legal Help with the 180-Day Rule

While you can file for bankruptcy without an attorney, small details like the 180-day rule can make it tough to navigate bankruptcy law on your own. A skilled attorney knows the ins and outs of federal bankruptcy law and the legalities in their own jurisdictions.

If you've filed for bankruptcy and now have incoming assets, the Craig Black Law Firm can help. I'll take a look at your filing and the asset and advise you on how to proceed. Give me a call at 678-888-1778 or complete this form, and I'll be in touch.