Chapter 7 and life insurance cash values

[Barney028]

Chapter 7 filer due to business being hit with all of this Obama hope and change.

I had to disclose all of my life insurance policies which I own but my wife pays the premiums and has for years and years.

My wife is the beneficiary on all of my policies.

2/3rds of the policies have loans but there is cash above and beyond the remaining loan value.

I am a prostate cancer survivor, now age 70. I can never replace this life insurance. Face value of policies is substantial.

Can the trustee force me to cash in these policies as opposed to simply borrowing and turning over the excess cash?

There are tax implications as the dividends and been continually reinvested so I would get hit with substantial taxes if cashed in.

Has anyone faced this problem before?

[StartingOver08]

I had excess cash value in my life insurance policy and was allowed to keep it. However, I am in FL and my attorney exempted the value. The policy was in full force and effect and the Trustee did not make me sell it.

Check your exemptions for your districe here and look for cash values of life insurance: www.legalconsumer.com