Will by life insurance policies be protected when filing bankruptcy?

Obviously, a term life has no cash value prior to death so it is not a problem in this regard.  As for a whole life policy or the like, you'll be able to retain a specified amount of the cash value that has accumulated within any permanent life insurance policies you own.  Although bankruptcy courts consider cash value within life insurance an asset, federal law permits a person declaring bankruptcy to "exempt" certain types of property from creditors to make a fresh start. Under federal exemptions, you can protect up $10,775 of a life insurance policy's cash value.  Also, married couples may double all exemptions under the federal bankruptcy code. Federal bankruptcy law specifically allows each state to "opt out" of federal exemptions and set their own guidelines pertaining to assets you can protect from creditors in a bankruptcy. Note:  Many states have chosen to opt out and others allow you to choose between state or federal exemptions. However, you cannot take both federal and state exemptions; when filing for bankruptcy you have to choose one or the other.