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Life Insurance

Can I still pay payment to my Life Insurance that I purchased 20 years ago if I apply for bankruptcy? Can I still own a life insurance policy?

One Response to “Life Insurance”

Barton Goth, GCO Inc. Bankruptcy Trustees said...

As long as there is no accessible cash value to this policy (and your spouse or child is named as the beneficiary) and you are successfully able to meet all the obligations under the Bankruptcy & Insolvency Act (i.e. payment to trustee) then there is no problem with you having and continuing to contribute to the policy. However, if there is an accessible cash value these policies must be closed and the funds will be divided up equally among your creditors.