Beneficiary of life insurance and Ch 7?

[nickifan]

Hello...

I haven't been here for a little while...I lost my mother last week. She was very elderly but it is a shock nonetheless. I don't think we're ever _really prepared to lose a beloved parent.

My mind is so scattered right now ... and though I haven't even retained my Ch 7 attorney yet, much less filed -- I nearly sat bolt upright in bed last night when I realized that I am now going to get her life insurance benefit -- all of $1200, but still -- and also a $1000 death benefit from her pension plan.

What will those amounts mean in terms of "assets" and the Ch 7 paperwork?
I had hoped to pay off the attorney with part, and perhaps do a grave marker with the rest. Should I not "apply" for them yet, or hurry up and spend them, or what?

I will ask the attorney I plan to hire but just looking for a little comfort...or warning.

The irony is, now I no longer worry about Wells Fargo freezing her/our joint bank account, as there will be no Social Security check in it anymore. I hadn't really looked "ahead" to the insurance payout, though.

I did do a quick search but only found Ch 13 situations. Thank you for all input.

[blessed]

First, I'm so sorry about your mother.

With that amount it is very reasonable to spend it on the things you've mentioned. Our income tax refund was about that much and we spent it on attorney fees and some necessities, no issue. If you used it for a luxury item it could be questioned, you're safe.

[momxx5]

I don't think those amounts of money would make too much of a difference....kicking you into CH 13.

If I am reading this correctly these would be one time payments, not that amount each month. I think if were a monthly income then it would raise a flag, other than that I think you'll be fine.

[Flamingo]

First, I am sorry as to the loss of your mother...secondly, does she have a will and who is the executor/executrix? Does she have other property (i.e., house, bank accounts, furniture, etc., etc.)? You state you have not yet retained an attorney. Although the insurance proceed amounts are small, they are an inheritance during the six month period prior to your filing and will need to be disclosed. Depending upon whatever else is involved as to your mother's estate, before you do anything I would discuss the situation with an attorney so you don't take any wrong steps. Best of luck to you...