If I file bankruptcy, can the court take the life insurance payout I received upon my husband’s death?

UPDATED: Jul 12, 2012

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If I file bankruptcy, can the court take the life insurance payout I received upon my husband’s death?

I was employed at the time he died but had to quit due to grief/illness. So I will now have to use the money to support myself. All debts are in my name solely.

Asked on July 12, 2012 under Bankruptcy Law, Ohio


Terence Fenelon / Law Offices of Terence Fenelon

Answered 10 years ago | Contributor

Your question is state specific.  The protection afforded to by the proceeds of a life insurance policy are usually determined by the exemptions granted under your state's legislative policies.  Some states follow the federal guidelines.  You would really need to speak to an attorney in Ohio who can properly advise you.  In Illinois, the proceeds would be partially exempt (protected)

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