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Rental property can be placed into a trust and protected from creditors thereby under certain circumstances. A spouse can file bankruptcy without including the other spouse. However, if there is joint debt between them or the other spouse has debt it's usually advisable that they both file. When a bankruptcy is filed all debts must be included along with medical bills.

The effect of an inheritance while you are in bankruptcy depends on timing. If you inherit within 180 days of the date your petition is filed, that inheritance will become property of your bankruptcy estate. You will be required to bring that matter to the attention of the court and your trustee by amending the paperwork filed with the court to disclose the inheritance.It does not matter that you might not actually receive anything for months or years. The key date is when your loved one passed away. In a Chapter 13, the value of the inheritance will be used to determine, in part, how much you must pay into a Chapter 13 plan in order to be fair to your creditors. If the inheritance is received after that initial 180 day period, the effect is different. If you are in a Chapter 13 case, however, it may still be property of your bankruptcy estate. In addition, your Chapter 13 trustee may also contend that good faith requires devoting any excess funds or property to the plan.