Protecting my inheritance

[JeG]

Greetings!

Apologies in advance for the long post, but I really need some advice regarding what to do / who to talk to about how to protect the monies from an inheritance.

I'll give a little background so you can see where I'm coming from...

I am a California resident, make an honest if not meager living that pays my bills and not much else. I never really had any spare money to speak of, and my immediate family was never "well to do" as things go, but recently my father passed away, leaving me his belongings & as the beneficiary of a small insurance policy. The total value of this estate with the policy included may net me $40k - $50k at best (probably closer to $30k).

The kicker is that I was just getting ready to file Chapter 7 bankruptcy, because I have about $15k in frivolous medical bills that I refuse to pay (who the hell needs THREE ct scans & SIX SETS of x-rays for a concussion from falling in the tub?!?!?!), and another $10k for a judgment against me on a car accident that my insurance company screwed up on.

Speaking with the bankruptcy attorney today, I find out that now that there is an inheritance coming in, the Chapter 7 filing may be no longer possible. I was hoping to be able to clear these debts & start with a clean slate, and then the inheritance would be a great kick start to that fresh start.

So the bankruptcy attorney tells me that there might be a way to still have a happy ending, and that is to wait on filing the Chapter 7 for now, take the proceeds from the estate & insurance policy & invest it into something like real estate, and then file for the Chapter 7 after.

He said that doing this will prevent the debtors from being able to tap into my inheritance, and still allow me to file for the Chapter 7 down the road virtually unmolested. It sounds great, but it also sounds too good to be true.

So my questions for all of you out there are:

1) Does this sound feasible?
2) What is the best thing to invest the money into (if not real estate)?
3) What are the dangers of taking this path?
4) Can you suggest a better idea?

Also, on a completely unrelated subject, I am currently banking with Wells Fargo (just standard checking & savings accts), and the attorney told me that I need to get away from those guys immediately & bank with someone else. He didn't specify why, but it had something to do with how they could possibly affect / impact the filing of the Chapter 7.

Any ideas as to why he might give such advice?

Thank you in advance to all for any assistance you can provide.

[jIM_Ohio]

If you paid an attorney for advice, then came on the internet to get advice for free... I see why you might have been at fault for the medical bills or car accident.

Hopefully you lose the computer in the bankruptcy proceedings, you might be **um what's the word I am looking for here** umm, too _________ to use a computer.

[JeG]

As much as I was hoping for constructive advice, and not assumptive insults, I'll address your reply.

I have not yet paid a dime to any attorney, I have merely taken advantage of free consultations. The information gained in the consultation, personal research on bankruptcy cases, and info from relatives/friends/etc is what I have to go on thus far, and I am seeking info from resources such as this site before deciding to actually spend any money.

Hopefully the info I receive from this site will be better than what you provided, and as well you might try not to be **um whats the word i'm looking for here** umm, such a _________ in the future.

[disneysteve]

I was hoping for constructive advice

Here is my constructive advice. Take the inheritance. Pay off the $15,000 in medical bills and the $10,000 judgement against you. Both are your legal responsibility to pay if you are able to do so. The inheritance makes you able.

Then take whatever is left and use that for a fresh start. Filing bankruptcy to get out of paying bills that you can afford to pay is wrong, legally and morally.

If you had questions about the need for the medical tests, the time to ask those questions was BEFORE they were done, not after. Then it is too late. If you consented to the tests, you also consented to pay the resulting bills.

[TBH]

Hi, JeG.

I agree that you are responsible for those bills. I think you will be in a better position if you pay them off instead of filing for Chapter 7, even if it means you net nothing from the inheritance after the bills are paid. Hopefully you will be debt-free (unless you also have other debt) and you won't have the huge ding on your credit that the bankruptcy would cause.

Good luck. I'm sure it will be painful to kiss the inheritance goodbye, but I think it is the smartest and most ethical course of action here.

[EEinNJ]

Yeah, you came to the wrong place if you were looking for advice on getting a free pass, going bankrupt and keeping an inheritance. It sounds like you've had some hard luck, and gotten some bad advice, and that's too bad. You make it sound like somebody else is to blame, though. Most of the advice you will see here is about taking responsibility, making better choices, and learning to do the right thing.

[kork13]

I'm sorry that your situation is as it is, but perhaps you can look at it this way.... Your father, through the inheritance he left you, is at least giving you a way to responsibly sort yourself out, start over, and make some good decisions for yourself. Go forward as best you can, and take the chance you have to move forward without the black mark of a bankruptcy hanging over you.

So I'm with the others, as much as you might not like it, it would probably be best to pay off the debts, and take anything left to move forward from there. Good luck, JeG.

[mommyof4]

What they all said. Take the inheritance, pay the bills, and this will give you a clean financial start. It really is the right thing to do. Best of luck to you, too, and I'm sorry about the loss of your father.

[docstudent]

Keep it, you need to get ahead.

[disneysteve]

I wonder if we will hear from OP again.

[mommyof4]

I wonder if we will hear from OP again.

I doubt it. I don't think he heard what he wanted to hear.

[LivingAlmostLarge]

Pay the bills. You might not be able to file BK anyway.

[anastasia-b]

If you paid an attorney for advice, then came on the internet to get advice for free... I see why you might have been at fault for the medical bills or car accident.

Hopefully you lose the computer in the bankruptcy proceedings, you might be **um what's the word I am looking for here** umm, too _________ to use a computer.

WOW. Classy.

OP: This sounds like a case of "you can't have your cake and eat it too." If your attorney advises a legal way to "stash" your inheritance to keep it safe from BK, and you feel ok with yourself to do this, by all means go ahead. Personally I think you should pay the debts with the inheritance. Your credit score will probably be less damaged this way. You would wind up with a clean slate. Good luck.

[maat55]

Trying to avoid debt you can pay is a bad character flaw. The money you owe is earned and needed by someone. If you want to live a less stressfull life, do the right thing.

You will remember how you dealt with this problem for a very long time, make it a good memory.