' Bankruptcy and Life Insurance - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Does Bankruptcy Affect a Life Insurance Policy?

Life Insurance Policy And Bankruptcy Pasco, St Petersburg, And Tampa Florida.If you’re considering bankruptcy, there’s a good chance you have a lot of questions. One of the most common concerns when filing for bankruptcy is how doing so will affect your assets.

From your home to your vehicle to your financial savings, bankruptcy can creep into every area of your life. But does bankruptcy affect your life insurance?

Many people choose to invest in life insurance policies because they provide a financial safety net for themselves and their families if anything happens to them. It is an asset and it has value, which means you need to make sure your bankruptcy attorney knows about any and all life insurance policies you have when you file.

It’s also important you determine whether the policies you have are term or whole policies and then let your bankruptcy attorney know this information, as well. To learn more about the difference between term and whole life insurance and how that might affect how you deal with it when you file for bankruptcy, check out this information from Policygenius.

Life Insurance Can Be Exempted When You File for Bankruptcy

In most cases, life insurance policies can be exempted when you file for bankruptcy. This means they will be protected from the bankruptcy trustee, but you still need to disclose them on your bankruptcy petition. The court needs to know the asset exists and then your attorney can help you take the appropriate steps to exempt them from your bankruptcy filing.

If you have a whole life insurance policy that has cash value, it’s a good idea to confirm that cash value and share that information with your bankruptcy attorney. This way you’ll know the entire policy is protected when you file.

Failing to include life insurance policies when you file for bankruptcy could result in the asset not being protected. Worse, it can result in it looking as though you committed bankruptcy fraud and were intentionally trying to deceive the court by hiding the life insurance policy when you filed. This can cause the court to dismiss your entire bankruptcy case.

Protecting Your Family is Important to You

Filing for bankruptcy is a big decision, but it’s one that is intended to improve your financial situation. By the time you begin filing, you’ve already committed to creating a better life for yourself and your family.

And if you’re one of the millions of Americans who have invested in life insurance coverage above and beyond what you might receive from an employer, you are well aware of how important it is to protect your family and prepare for emergencies. The last thing you want to do is put this protection at risk when you’re trying to do the best thing for those you care about.

The bottom line when it comes to bankruptcy, whether you have life insurance policies or not, is that you need to work with a bankruptcy expert when filing. It’s the only way to make sure the process goes as smoothly as possible and that you have the protection you need for your assets. Everyone’s situation is unique and you need an expert to review your financial details and make sure your bankruptcy filing is customized to what you need.

For more information or to discuss how working with a bankruptcy attorney can help you when you file, contact the bankruptcy Law Office of Robert M. Geller at 813-254-5696 to discuss your situation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

What Can You Write Off in Bankruptcy?

Many people filing for bankruptcy aren’t sure what debts can be discharged, or "written off," through bankruptcy. It’s important to...
Read More

How Often are Bankruptcies Denied?

Bankruptcy offers a lifeline for people drowning in debt. It provides a chance to start anew and regain financial stability....
Read More

How Much Debt Should I Have Before Considering Bankruptcy?

Dealing with overwhelming debt and financial hardship is difficult. The prospect of bankruptcy may offer a path toward relief, as...
Read More

How Long Does Chapter 7 Bankruptcy Take to Discharge?

Chapter 7 bankruptcy offers a fresh start and a path toward financial stability for people struggling with debt. But when...
Read More

Does Business Bankruptcy Affect Personal Credit?

Does Business Bankruptcy Affect Personal Credit? For entrepreneurs and business owners facing financial challenges, the prospect of business bankruptcy can...
Read More

Can I Get an Apartment After Filing for Bankruptcy?

Filing for bankruptcy often feels challenging and overwhelming. It also raises a variety of concerns. One of the most common...
Read More

Are SBA Loans Dischargeable in Bankruptcy?

Navigating the complexities of Small Business Administration (SBA) loans and bankruptcy can be a daunting task for many business owners....
Read More

How to Get Bankruptcy Off of Your Credit Report

Rebuilding financial health after bankruptcy is challenging, but that doesn’t mean filing is worth the effort. One common concern for...
Read More

What Happens When You File for Bankruptcy?

Contemplating bankruptcy is a significant decision that comes with many questions. If you're considering filing for bankruptcy, it's essential to...
Read More

Can I File for Bankruptcy If I Have a Job?

Many people considering bankruptcy are unemployed or know that unemployment is imminent. However, this isn’t always the case. In some...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions