Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Bankruptcy & Debt (https://www.askmehelpdesk.com/forumdisplay.php?f=44)
-   -   Bankruptcy and life insurance (https://www.askmehelpdesk.com/showthread.php?t=164014)

  • Dec 18, 2007, 06:53 PM
    MXGRNMA
    Bankruptcy and life insurance
    If I file bankruptcy can I be made to cash in or cancel my life insurance policy?
  • Dec 18, 2007, 07:06 PM
    ScottGem
    I don't believe so. But that is a question for the bankruptcy atty.
  • Dec 18, 2007, 07:14 PM
    Fr_Chuck
    There are many factors, first how much cash value you have in them, you are allowed specific cash on hand, and certain amounts of property is exempt by the court. So basically if you have 100,000 in cash value and going bankrupt on 50,000 in debt, most likely they will not allow you to go bankrupt

    You will have to notify the court of cash value in life policies as part of the bankruptcy.
  • Dec 20, 2007, 11:17 PM
    George_1950
    The bankruptcy code sets forth the federal exemptions, property that the petitioner may keep without contest by the trustee or creditors. This is property that has no liens attached to it. Equity in a whole life insurance policy is such property. Each state elects whether to approve its own exemptions, so you will need to find out what your state has done. Do not go into bankruptcy without a lawyer who is familiar with the law and practice in his state.

  • All times are GMT -7. The time now is 11:11 AM.