Hiding inheritance in bankruptcy – or hiding any asset for that matter – is one of the bad decisions people may make when they are going through the bankruptcy process. Always follow Texas bankruptcy laws, and come to Plano bankruptcy attorneys with any questions that may arise to ensure compliance.
Because bankruptcy may utilize non-exempt assets for the repayment of debts, some people may go to great lengths to try and hold on to however much they can. Strategies may include all-out fraud, like putting false liens on properties to more passive moves like simply “forgetting” about certain assets and hoping they will not be noticed.
Risks of Hiding Your Inheritance
Inheritances are among the assets that some people will try to get under the radar. Inheritances are considered property of the bankruptcy court if received within 180 days of filing and need to be reported to the courts on the appropriate forms.
Failing to report an inheritance can lead to:
- penalties;
- damage your bankruptcy case; and
- criminal charges.
If you are expecting an inheritance after bankruptcy, you may be able to keep the assets if you plan ahead. There may be legal and responsible ways to do this under federal and Texas bankruptcy laws – for example, spendthrift trusts – to keep the assets out of the reach of creditors and the bankruptcy courts.
However, most need financial and legal guidance with Plano bankruptcy attorneys to know whether these strategies can work and to make sure they are done correctly.
Hiding money or other assets is never worth it. Those wishing to keep certain assets should inquire about legal ways to do so under federal or Texas bankruptcy laws, such as certain trusts or through bankruptcy exemption laws. Plano bankruptcy attorneys at Warren & Migliaccio can go over the implications of inheritance in bankruptcy cases.
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