May I purchase term life insurance before filing for Chapter 7 and is there an amount I should stay within? 6 Answers as of August 17, 2017

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Stephens Gourley & Bywater | David A. Stephens
Yes, you can. The monthly payment should be reasonable given your income and expenses.
Answer Applies to: Nevada
Replied: 8/17/2017
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
You can buy such term insurance as you need, without any likely objection from the Trustee or anyone else.
Answer Applies to: Wisconsin
Replied: 8/15/2017
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Are you doing this just to beat the means test? The trustee can look into the date you purchased it.
Answer Applies to: California
Replied: 8/15/2017
Ronald K. Nims LLC | Ronald K. Nims
Yes, you can purchase term insurance before filing a Chapter 7. As long as the amount of life insurance is reasonable for your circumstances, there is no limit to the amount you can purchase (insurance companies generally will not sell you an unreasonable amount of life insurance).
Answer Applies to: Ohio
Replied: 8/15/2017
A Fresh Start
A Fresh Start | Dorothy G Bunce
Having term life insurance is a good way to spend down your budget, especially if you have a family to protect. Until you die, term insurance has no value, but you still need to include it as an asset. However, I suspect purchasing a large policy right before filing might raise some red flags and trigger an audit of your file.
Answer Applies to: Nevada
Replied: 8/14/2017
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