Life Insurance
If declaring bankruptcy would life insurances in your name have to be disclosed if they are being paid for by another family member (who will benefit in the event of your death)?
Is it considered something that has to be disclosed if a family member takes over the payment of the life insurances prior to bankruptcy as they were the ones that started them for you when you were younger and now don’t want to see them lost during the bankruptcy?
The proceeds will be treated as a “windfall” and seized by your trustee for the benefit of your unsecured creditors. If it is a substantial sum, you may wan to ask your trustee if it is possible to file a consumer proposal to have your bankruptcy annulled – you will have to sign over most, if not all, of the life insurance, but you won’t be bankrptcvy anymore.
Speak to your trustee about your options.