March 14th, 2008 by Questions
If your partner recently passed away, and has left you with small life insurance policy, but many debts, if you file bankruptcy for the deceased partner, can the money from the life insurance be taken
March 16, 2008 at 1:57 am, Barton Goth GCO Bankruptcy Trustees said:
If you are in or about to file for bankruptcy and an insurance policy makes a pay out to you, this is an asset that must be disclosed to the trustee and will be used to provide a small distribution to the creditors.
Failure to disclose this type of a windfall is a bankruptcy offense and will likely result in the refusual of a discharge.
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