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I just received a life insurance policy check and I am filing bankruptcy in Jan. What are my options?

Discuss the legalities of Bankruptcy Law

I just received a life insurance policy check and I am filing bankruptcy in Jan. What are my options?

Postby hackett » Tue Nov 22, 2011 9:10 am

My mother in law died and she left us a significant amount of money. We owe a relative money for a loan(we have a written and notorized agreement). We have a file date set with our lawyer for january4th. What are our opyions? Can we use part of the money to pay off the relative or do we have to hold it until the bancrupcy? We live in Ohio. The checks say cash immediately and only have a 30 day period to cash.
hackett
 
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I just received a life insurance policy check and I am filing bankruptcy in Jan. What are my options?

Postby marlan43 » Tue Nov 22, 2011 9:14 am

You can tell the life insurance company to hold the money at interest. It is a legitimate settlement option. You can then ask for a check whenever you are ready. Nobody has to know about this money, it is completely private. It all depends on what your intentions are, if you are going to pay your relative or try to get out of declaring bankruptcy. If you have filed already your credit is going to get dinged.
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I just received a life insurance policy check and I am filing bankruptcy in Jan. What are my options?

Postby albanwr26 » Tue Nov 22, 2011 9:26 am

I would cash it and pay off the relative, going to bankruptcy court is worse and will hurt your credit for 10 years. Its best pay off what you owe to people and restart.
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I just received a life insurance policy check and I am filing bankruptcy in Jan. What are my options?

Postby koltin » Tue Nov 22, 2011 9:29 am

If you have money, you will have to report it. That means it will increase your income for the year and you may not be able to get a bankruptcy.

Are you filing for chapter 13? If so, you have to pay everyone back anyway.

If it is a 7, then you might not qualify depending on the amount.
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