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Burnham & Associates | Stephanie K. Burnham
Perhaps. It will depend on your plan payment and disposable income. Please speak with a Bankruptcy Attorney for an answer based on your particular circumstances.
Answer Applies to: New Hampshire
Replied: 7/21/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Nothing if term policy, otherwise may have to sell equity in it.
Answer Applies to: California
Replied: 7/20/2011
The Law Office of Marvin Wolf | Marvin Wolf
Regarding life insurance. Financial planners love to sell life insurance like it's a great planning tool - but "it ain't necessarily so." Most life insurance is "term" life and has no cash surrender value for a trustee to go after. For "whole" life or "universal" life, there is a savings component added from which you can borrow - it is called "cash surrender value". This CSV has value to a trustee, so a debtor would need to exempt it. The good news is also bad news - life insurance CSV is a lousy paying investment that takes a long time to add up to anything, so a debtor's exemption will usually protect it.
Answer Applies to: New Jersey
Replied: 7/20/2011
Apple Law Firm PLLC | David Goldman
The life insurance policy will be evaluated just like other assets. Generally Term policies do not have a value and are not assets. If the policy has a value, there are various issues that will need to be looked at like how long you owned it and what the value is to see if it will be exempt or not. Sometimes if the policy is not exempt, you may be able to use and exemption under state law to make it or part of it exemption.
Answer Applies to: Florida
Replied: 7/20/2011
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
A life insurance policy remains in effect upon filing bankruptcy. You must continue to make the payments. If there is cash value in the policy it must be claimed exempt in order to keep the cash value from the trustee.
Answer Applies to: California
Replied: 7/19/2011
Rosenberg & Press | Max L. Rosenberg
Nothing will happen to it. You can keep paying into it.
Answer Applies to: Connecticut
Replied: 7/19/2011
Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
Yes you can continue to make the payments, assuming that you have the money. You need to make sure that you exempt the cash value if the policy is a whole life.
Answer Applies to: Michigan
Replied: 7/19/2011
Carballo Law Offices | Tony E. Carballo
You can keep your policy but you need to declare as an asset the cash value of the policy and exempt it.
Answer Applies to: California
Replied: 7/19/2011
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Yes, that is a specific deduction on the means test.
Answer Applies to: California
Replied: 7/19/2011
Bird & VanDyke, Inc. | David VanDyke
It will depend on whether it is a whole life or term policy. If it is a term policy then there is no cash or surrender value so you will not lose it. If it a whole life type policy then you must be able to exempt this value. If you can then you're fine.
Answer Applies to: California
Replied: 7/19/2011
Ashman Law Office | Glen Edward Ashman
Probably yes. An attorney would need to see your whole budget, all your assets, and details on your policy to tell you for sure (and the insurance payments may affect your plan payments).
Answer Applies to: Georgia
Replied: 7/19/2011
Law Office of Maureen O' Malley | Maureen O'Malley
If you have the money for it.
Answer Applies to: Virginia
Replied: 7/19/2011
Ray Fisher Law Offices | Ray Fisher
nothing as long as you continue to pay for it. If you stop paying for it then it will be cancelled just like it would if you did not file. Are you in bankruptcy now? If so talk to your lawyer about this.
Answer Applies to: Texas
Replied: 7/19/2011
