If my husband filed bankruptcy and he passes away, can the state take his life insurance to pay off his debts?

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If my husband filed bankruptcy and he passes away, can the state take his life insurance to pay off his debts?

My husband just recently filed bankruptcy. He has terminal lung cancer and we don’t really know how much longer he has to live. He is still able to work and has a life insurance policy through his place of employment, and I am named beneficiary on it and his will states the same. Can the courts use his life insurance to pay off his bankruptcy or is my interest in this protected?

Asked on February 18, 2011 under Bankruptcy Law, Alabama

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

I'm very sorry to hear about your husband. 

I believe the answer to your question depends on what type of property laws your state has (i.e. community property, etc.) and whether you filed bankruptcy with your husband.  You really need to check this with an attorney in your state to be sure, but I believe that if your state is NOT a community property state and you did NOT file bankruptcy with your husband, then your interest as a beneficiary of his life insurance policy should be protected.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

I'm very sorry to hear about your husband. 

I believe the answer to your question depends on what type of property laws your state has (i.e. community property, etc.) and whether you filed bankruptcy with your husband.  You really need to check this with an attorney in your state to be sure, but I believe that if your state is NOT a community property state and you did NOT file bankruptcy with your husband, then your interest as a beneficiary of his life insurance policy should be protected.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/


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