Life Insurance

October 2nd, 2010 by Questions

What happens if i declare bankruptcy and then recieve a life insurance policy that i am beneficiary for.

Posted from: Manitoba


One Response to “Life Insurance”

, A licensed trustee said:

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.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)