Filed 7 a few weeks ago and at my 341 I disclosed having a whole life policy with cash value. However, my policy stipulates that "cash" can only be removed in 3 ways. 1.) Once a year policy withdrawal up to 10% of surrender value. 2.) Policy loan as a percentage of net surrender value availability. 3.) Cancel policy and receive ending net cash surrender value.
In discussions with the trustee, he argued that the cash surrender value is non exempt and not protected unless included on the schedule. Because of other exemptions, I can't exempt this, however by surrendering the policy would in therefore cancel the policy. I have had the policy for 12 years and if it is cancelled, there would be an incredible hardship and expense to replace it now that I'm 12 years old. Can the bankruptcy court force cancellation of a life insurance policy?
Any thoughts? My attorney is not knowledgeable in this area of bankruptcy.
PS. I've got the worst trustee not only in Georgia, but the entire United States!
In discussions with the trustee, he argued that the cash surrender value is non exempt and not protected unless included on the schedule. Because of other exemptions, I can't exempt this, however by surrendering the policy would in therefore cancel the policy. I have had the policy for 12 years and if it is cancelled, there would be an incredible hardship and expense to replace it now that I'm 12 years old. Can the bankruptcy court force cancellation of a life insurance policy?
Any thoughts? My attorney is not knowledgeable in this area of bankruptcy.
PS. I've got the worst trustee not only in Georgia, but the entire United States!
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