My Wife Died During Chapter 13

[danas15146]

I am so sorry for your loss. I hope that things work out for you. You and your child will be in my thoughts.

[Greg0538]

Sorry for your loss. My wife passed away about 1 year into a 100% CH 13 plan. We filed jointly. My attorney filed an ammended plan in just my name and only including my debts and joint debts and was approved. The life insurance was not considered. I don't know if this was because I was in a 100% plan or not. I wasn't even going to contact my attorney, and just struggle through trying to make payments without my wifes wages. I am glad I did. Don't know if this helps or not.

[planescrashing]

My wife didn't really work that much. She had no real income to speak of or income to be lost because of this. The real loss for me is her not her income... I miss her terribly and it's really affecting my ability to work and concentrate. I just don't want to be kicked while i'm down by a trustee... I'm affraid it could drive me over the edge. We are actually about a year and a half into our when this happend. when you restructured your plan did you tell your attorney about the insurance money? My attorney said if I tell him about it he is required to tell my trustee.

[MajorMike]

I'm sorry for your loss..

If the death was ruled a suicide, are you going to even GET the insurance benefits? I know with my policy, suicide is not paid out....

I hope everything works out to your advantage.

I found this online:

Life insurance is regulated by the various states, not by the federal government. It is deemed to be contrary to public interest to encourage suicide by making insurance proceeds available to those who see no way out of their financial difficulties. So insurance companies usually prohibit claims when suicide is the cause of death... they consider that the contract is void and refund premiums to the owner of the policy (who usually died along with the insured). Insurance companies' actuarial tables, upon which they base their premiums, exclude suicides, so to expect companies to pay up for suicide prevents them from pricing policies correctly, and allows the public to avoid paying higher prices because of such selfish acts. State insurance law limits the period of this exclusion, so that if a person was sufficiently rational when they took out the policy, they are not penalized if later on they become despondent. Usually, this suicide exclusion allows insurance companies to void contracts if suicide occurs within two years of the policy date. It's considered that this will sufficiently discourage someone from initiating a policy with the intent to later commit suicide. The rare person who can maintain their determination to die can in fact deliver money upon their death to their beneficiaries.

I'm sure you took the policy out before the two year clause. I hope you can get out of your 13 and you and your child can go on living with as least stress as possible.