Inheritance, Business and Personal Bankruptcy

[justdart]

I live and have a business in Illinois. My brother and I are equal owners in this C corp. Business is doing very badly with economy. Both my wife and I are signed on loans for the business with bank and the business owes the IRS. Almost everything we have is pledged. My wife has a brother who is in very poor health, heart problems and others. He does have quite a lot of money which my wife would receive the Lyon's share of. We are considering personal and business bankruptcy, if things do not improve considerably and soon. My question is....If my brother-in-law does pass away prior to us deciding to file for bankruptcy and we do declare after his passing, does all of the inheritance which my wife gains get vacuumed up in the bankruptcy?? Not trying to be coldhearted, but my wife would probably not speak to me for many years if this happened. Just trying to make the best moral and correct decisions for all involved.

Thanks much for your comments and feedback!!

 

[bigun]

Money inherited prior to filing are personal assets. WHat happens to them depends on the exemptions your state allows.
Should you file and he dies within 180 days of the filing date then, any inheritence become property of the bk estate and can be seized by the trustee.

I'd suggest you get to a lawyer sooner rather than later and lay out all the details.