Under Section 541(a)(5), any property that you inherit within 180 days of filing your bankruptcy petition becomes property of the estate.
Rule 1007(h) of the Federal Bankruptcy Rules of Procedure requires your bankruptcy attorney to supplement your bankruptcy petition to reflect the new property within 14 days after you learn of the inheritance. Rule 1007(h) states:
If, as provided by § 541(a)(5) of the Code, the debtor acquires or becomes entitled to acquire any interest in property, the debtor shall within 14 days after the information comes to the debtor’s knowledge or within such further time the court may allow, file a supplemental schedule in the chapter 7 liquidation case, chapter 11 reorganization case, chapter 12 family farmer’s debt adjustment case, or chapter 13 individual debt adjustment case. If any of the property required to be reported under this subdivision is claimed by the debtor as exempt, the debtor shall claim the exemptions in the supplemental schedule. The duty to file a supplemental schedule in accordance with this subdivision continues notwithstanding the closing of the case, except that the schedule need not be filed in a chapter 11, chapter 12, or chapter 13 case with respect to property acquired after entry of the order confirming a chapter 11 plan or discharging the debtor in a chapter 12 or chapter 13 case.
It is important to note that your duty to disclose this inheritance arises even if your case has been closed. It is also important to remember that the inherited property may be exempt, if it is the kind of property that is protected by Colorado exemption laws.
If you fail to disclose inherited property, you risk having your discharge revoked and being charged with bankruptcy fraud.
If you learn that you might be inheriting property, you should talk to your bankruptcy attorney right away.