Life Insurance and Bankruptcy

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If I file for bankrutpcy will I would lose my life insurance policy (my son is the beneficiary and I intend on leaving it there for him)?

Posted on Thursday, January 24, 2008 | Filed under: Bankruptcy
 posted by Questions @ 5:04 pm 1 Comment
1 Expert Comment:

 At January 28, 2008 | 8:40 am , Barton Goth GCO Bankruptcy Trustees Said...

This will depend on a few things but if it’s a term policy it probably will be safe from seizure in a bankruptcy. The general rule is that if there is a savings component that portion will be lost.

Now there are some excepations to this rule (i.e. held with a life insurance company) but they are very specific, so the best way for you to be sure is to take in relevant documents to a trustee and they will be able to give you a better idea of whay you can expect.

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