Be Intentional About Life

Saving the Family Farm

Here's the long story short.. My boyfriend and I started a business just before the economy died. Then my dad died leaving me 1/3 of the family farm that has been in our family for generations. The business has me in serious debt. I have 1 credit card judgement against me and 2 more pending. If I file bankruptcy I could lose my inheritance and if I don't I could still lose it. Are there any other options?

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Permalink Reply by Derek Sisterhen on February 11, 2010 at 9:13am

Hey Suzanne, it sounds like life has been throwing a lot of curve balls at you. I'm sorry to hear about the difficult time you've had both financially and in losing your father.

Regarding your inheritance property, my research is showing you'll likely be able to protect it. In general, inheritances received within 180 days of filing bankruptcy are at risk of being used to satisfy the debt. Since you've already received the property, you should be in the clear on that rule.

Likewise, there are some considerations given to assets that will be used for retirement purposes. If your farmland was perceived as a retirement asset, it could potentially qualify for protection under this additional rule.

Given the nature of your question, you're best bet is to contact a good bankruptcy attorney who can speak directly to the law in your area. I'd be happy to refer you to the attorney I send clients to who have specific bankruptcy questions - please let me know how I can help.