Bankruptcy, Acquiring Money Afterwards

Question:
I had my debts forgiven because of bankruptcy. If I were to come into a lot of money later, would those debts and obligations be reopened? If so, how would you recommend sheltering such money? Are there any special provisions to protect minorities and people who live in trailers?

Answer:
Most after-filing acquired property is not property of the bankruptcy estate, but there are exceptions. The exception that may be relevant to you is for inheritances. An inheritance would be property of the bankruptcy estate if you had the right to take within 180 days after the case was filed. After 180 days you are normally in the clear. As to sheltering assets, there are specialized attorneys that counsel folks on asset protection. If you have a lot of money it's best to find a good attorney in that field who will carefully review your finances and make recommendations based on your particular situation. There is protection against discrimination against minorities as well as people that have filed for bankruptcy. The difficulty is proving the justification for the discrimination. (It's OK to discriminate against someone that you conclude is a bad risk financially.) I think the only special protection folks living in trailers get comes from the good Lord above. Virtually every attorney will tell you that you cannot legally 'hide' your assets. There are about four lawyers in the country that will tell you: "Sure you can." Here's one way. Suppose you come into some money and want to buy a parcel of land. Use the money to buy an annuity policy with an Isle of Mann insurance company. The company will invest your money, but you can direct the investment. Tell them to buy the property. For all legal purposes, the off-shore insurance company owns the property. There is no federal requirement that you report financial interest in insurance policies. At some point of your choosing, you reverse the transactions on the insurance policy and the property comes into your name. A trust in the Cayman Islands can own a Bermuda corporation which, in turn, owns your home and to whom you pay rent. It will cost you about $200 to set up both the trust and the corporation. But if you REALLY want to hide money, put the money in an Israeli bank. By law, Israel may not divulge depositor information to their own government, let alone any snoops from your ex-spouse. You can spend a lifetime burrowing through the ins-and-outs of this sort of thing.





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