No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi everyone, just curious on everones opinion according to a life ins carrier underwriter, they want to know the following.
- reason for bk (obvious one)
- reason for face value, lets say 500k on a term policy
Now the odd ones...
- Can you legally apply before DC, reasoning you'd be 'gaining an asset' during a open BK
- Can you get into a 'contract' during a open BK
They said ask the trustee for approval, I understand in a CH13, but on a Ch7 post MOC just awaiting DC, the latter 2 questions are striking me as odd.
Never seen this one before. Try this read......
https://www.thebankruptcysite.org/resources/can-the-bankruptcy-court-take-life-insurance-funds.html
I mean I don't see how a term life insurance policy held by the debtor is an asset for the debtor. It doesn't mature until death. There's no cash, or accumulating cash value there for the bankruptcy. Now if it was a whole life policy that may very well be different because term and whole life are 2 separate entities.
I don't know why the underwriter would be giving you such a big problem over this but you're less than 60 days away from 'freedom'. So, if they give you a hard time I'd just say I'll see you in August after discharge...
Thanks for the responses, that is exactly my thought, a WL, UL, VUL those can be, after awhile or dumping into a 10 pay WL or Single Pay WL, that would definatly raise an eyebrow of the court if not disclosed/approved.
Which is why the application for bk ask's about cash value life ins, but ter is not an asset at all; maybe a return of premium, but even then you're only going to get the premium back you put in, without interest. That is if you do not die before and you never miss the payment. Statistically a lot term policies/life policies lapse well before death.