Under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code, certain property acquired by the debtor after the filing of the petition becomes part of the bankruptcy estate. An example of such property is:

a. Wages earned by the debtor within one year after the filing of the petition.

b. Inheritances received by the debtor within 180 days after the filing of the petition.

c. Social Security payments received by the debtor within 180 days after the filing of the petition.

d. Child support payments received by the debtor within one year after the filing of the petition.

Question

Zaniyah Keith

Business

20 June, 23:13

Under the liquidation provisions of Chapter 7 of the federal Bankruptcy Code, certain property acquired by the debtor after the filing of the petition becomes part of the bankruptcy estate. An example of such property is:

a. Wages earned by the debtor within one year after the filing of the petition.

b. Inheritances received by the debtor within 180 days after the filing of the petition.

c. Social Security payments received by the debtor within 180 days after the filing of the petition.

d. Child support payments received by the debtor within one year after the filing of the petition.

+1

Answers (1)

Know the Answer?

Eve Vega · Answer 1

(b) Inheritance received by the debtor within 180 days after filing of the petition.

Explanation:

In most of the cases, the assets acquired post filing for bankruptcy under Chapter 7, do not become part of the bankruptcy estate except for some exceptions.

An inheritance, assets from a marital settlement agreement or divorce decree; life insurance proceeds or death benefits acquired within 180 days after the petition has been filed, become part of the bankruptcy estate.

Thus, it is evident that an Inheritance received by the debtor within 180 days after the filing of the bankruptcy petition will be included in the bankruptcy estate and the debtor in such a case must inform his trustee when he becomes entitled to these funds.