Hiring a bankruptcy law lawyer in Van Nuys will help you get answers to one of the most dreaded questions about bankruptcy. If you file for bankruptcy, will it affect your life insurance fund?
Talk to a Bankruptcy Law Lawyer in Van Nuys
Every case is different. If you are afraid that the bankruptcy court will take your life insurance fund, then you must talk to a lawyer.
In some cases, the value of your life insurance is protected. However, it hinges on various factors. If you have a term life insurance, it doesn’t have a cash value. That said, there is no need to worry about it when you file for bankruptcy.
However, your life insurance might be a different story. Over time, this policy accumulates cash value. In that case, you can cash it in or get money. You should talk to our lawyer to know how you can protect your life insurance funds.
One way to know if you can protect the funds is to review your policy. Then, you also determine when you received your funds.
If you received the benefits before you have filed for bankruptcy, then the money is considered a cash asset. It doesn’t matter whether it comes from a life insurance fund. You must look at the exemptions that apply to your case.
There is no definite answer to it. That’s why you must talk to our lawyer to know the best way to protect your life insurance funds.
Can You Still Buy Life Insurance After Bankruptcy?
Your qualification to purchase life insurance will hinge on various factors. These would include your hobbies, occupations, medical history and a lot more. The life insurance provider will look at these areas to calculate your risk.
Now, if you have declared bankruptcy, your provider may find you risky to insure, however; you can still purchase a life insurance policy, though you can’t purchase it now if your case has not been discharged yet.
In this case, you must wait for your case to be discharged and your eligibility will still depend on the company. Every carrier has its own length of time to consider before allowing you to purchase a policy.
While bankruptcy is still ongoing, you may obtain a small amount of coverage. There are insurance companies that are flexible to Chapter 13 bankruptcies. You may have to talk to your agent to help match with the best insurance company for your case.
It is also ideal that you talk to a bankruptcy attorney to know about your other options. In some cases, you may not need to file for bankruptcy. It depends on how much you owe.
Here at Karine Karadjian law firm, our lawyers will look at all options applicable to your case so that your finances will suffer as little as possible. Call us today for a personalized plan. Our lawyers will handle your case from start to end.