Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


About Chapter 13

Discuss anything relating to Consumer Law

About Chapter 13

Postby eorl » Fri Jun 06, 2014 5:19 pm

Can you Please give me your impute, not legal advice, regarding the following:

Say a person filed a chapter 13, in July of this year,(prior to new laws)and the bankruptcy is still open, and set up to repay creditors a portion of debts over 4-years. And now just learned that you are a beneficiary on a life insurance policy on a relative that just passed away, "DOES THE LIFE INSURANCE MONEY GO INTO THE BANKRUPTCY, OR IS THAT SOMETHING THAT IS OR CAN BE EXCLUDED FROM GOING INTO THE BANKRUPTCY"?

Sincerely, John
eorl
 
Posts: 47
Joined: Fri Apr 01, 2011 10:41 pm

About Chapter 13

Postby Pierson » Sun Jun 29, 2014 1:04 pm

that really depends on how the courts and trustees in your jurisdiction handle such things.  Technically, the life insurance proceeds are part of the bankruptcy estate.  Whether you have to increase your plan payments or not because of it depends on what exemptions you have avaialble, what percentage you're paying to your creditors now, and the liquidation analysis with the new asset.  Some jurisdictions take the position that the plan is fixed as of the date the plan is confirmed, but you need to check with your attorney on how yours handles it.
Pierson
 
Posts: 47
Joined: Tue Dec 31, 2013 9:22 am


Return to Consumer Law

 


  • Related topics
    Replies
    Views
    Last post
cron