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Bankruptcy's 180-Day Rule: Protecting Assets or Liquidating?

1/8/2026

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Summary

Story summary

The 180-day rule in bankruptcy determines how assets, such as inheritances or life insurance proceeds, received within 180 days after filing are treated.
In Chapter 7, these assets may be liquidated to pay creditors.
In Chapter 13, they can increase repayment amounts.
Regular wages and certain bonuses are generally protected.
Alternatives like debt settlement or consolidation may provide relief without bankruptcy's long-term consequences, and you should consult a bankruptcy attorney.

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Story summary

The 180-day rule in bankruptcy determines how assets, such as inheritances or life insurance proceeds, received within 180 days after filing are treated.
In Chapter 7, these assets may be liquidated to pay creditors.
In Chapter 13, they can increase repayment amounts.
Regular wages and certain bonuses are generally protected.
Alternatives like debt settlement or consolidation may provide relief without bankruptcy's long-term consequences, and you should consult a bankruptcy attorney.