How do I protect my inheritance from bill collectors?

UPDATED: Jan 4, 2012

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How do I protect my inheritance from bill collectors?

I charged off a HLOC on a home I foreclosed on over 2 years ago. My Mother just passed away and I will be inheriting $40k or so. How can I protect my inheritance from this collector?

Asked on January 4, 2012 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you are concerned about bill collectors and are inheriting $40,000, one way to get a discount on the amount you owe on some bills is to offer a lump sum 30% on the dollar as payment in full evidenced by a written document signed by the bill collector's representative.

However, to protect your inheritance from bill collectors, the best way is to keep the money in cash at home in a safe. If you place it in a bank account or stock brokerage account, it is subject to a levy in the event you have judgment creditors against you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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