Personal Bankruptcy inheritance

[valerie_jordan]

My husbands father is a banker is the owner of 2 banks(major stock holder).My husband and his sister are beneficiaries.....ok here is my question..........we live on a farm and a house that his dad built for us,and my husband has went into debt in the cattle business and we are way over our heads and yet our debt continues to grow($200,000).......house and everything is in dads name..is there any possible way that my husbands inheritance can pay us out of debt? It seems we are fighting a losing battle.......hid dad says he doesnt think that inheritance can pay off sons debt because his money is all on paper (stocks) but I am not so sure he knows.................... we are spiraling out of control.......................is bankruptcy only way to stop this?

 

[Michael Wechsler]

I'm not sure I understand. To begin, inheritance can be owned immediately if your husband's father just gives him the property now instead of waiting until his father's death. Until that time the property is legally owned by your husband's father and your husband has nothing but a potential interest as an heir. Your father in law could change his will at any time and disinherit your husband. I say this not to sound mean but to make the point that he has no control over that property.

That said, it might be a better idea if all the property remains in your father in law's name and that it cannot be touched by creditors if you declare bankruptcy. In that event you wouldn't lose your home because it wouldn't be your home to lose but your father in law's.

Your matter truly needs the assistance of someone who is a specialist in bankruptcy who can review your entire situation, paperwork, property, and debts. A full consultation and review of your paperwork will be able to give you a more informed solution as to the options available to you. You can send us email if you require assistance in locating one although your husband may already have consulted with a specialist.

 

[valerie_jordan]

more about our inheritance

It is ok with us that our land and house is in my father-in laws name since it is part of his inheritance...........my question is that if my husband is due to also inherithalf interest on 2 banks plus possibly a couple more million,,is there some way that our 200,000 dollar debt can be paid out of that.............

 

[Michael Wechsler]

Valerie, the same rule applies. It's not his until it's his. Until his father passes away he has no right to the interest in the banks and your father in law can change his will at any time. He can give away the half interest in the banks to charity and nobody will inherit.

As I said earlier, the easiest remedy is to ask Dad for some money now if you are seeking to use those assets to pay off the debt. Nobody would accept your husband's inheritance right because it is worthless as such. Nothing is guaranteeing them that they will receive it -- as explained above it could all go to charity and the creditors will never receive a dime. It might be different if you provided collateral but expect the collateral to be extremely high, e.g. a secured lien on all the equity in your home and other property.