Is a trustee entitled to any life insurance proceeds that become payable after discharge?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is a trustee entitled to any life insurance proceeds that become payable after discharge?

My husband and I filed for Chapter 7 about 5 months ago; we were discharged on the 5th of this month. Unexpectedly, my husband passed away on the 6th.There is life insurance that I am entitled to receive. Will the trustee take that money? Do I need to inform the trustee about money coming in? If I don’t inform them, can they come after me for the money?

Asked on February 22, 2013 under Bankruptcy Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you received a bankruptcy discharge before payment of any insurance money with respect to the passing of your husband then under federal bankruptcy law you are entitled to the full amount of the insurance premiums for yourself and not the trustee. You get to keep the entirety.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption