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Life Insurance Proceeds and Chapter 13

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    Life Insurance Proceeds and Chapter 13

    Greetings, All.

    Thank you for providing such an informative forum on bankruptcy.

    Since this is my first visit (and post) a bit of background is obligatory:

    My wife and I filed for and were approved for a Chapter 13 Bankruptcy in August of 2010. We are making our scheduled payments to our trustee as agreed in our plan.

    My wife's parents passed away recently (Mom at Xmas in 2009 and Dad at the end of March 2010) and we just received documents in the mail from a life insurance company about a claim on my father-in-law with my wife as the beneficiary.

    No one in my wife's family was aware of this policy (both of her brothers are beneficiaries too) so it was not known to us at the time of filing our bankruptcy.

    Does anyone know the rules in the State of Michigan regarding this policy? Does the Trustee receive any/all life insurance payments?

    I am seeking your kind assistance, aas our attorneys are notoriously difficult to get in touch with since the filing was finalized.

    I do not know what to do... Help!

    #2
    From what I've read on here, I guess things will vary, depends on the amount of the payout, and if your trustee wants it, but you let your attorneys office know, so that is the first step.

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