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    Employer-Paid Life Policy

    My employer pays the premiums for a life insurance policy with a benefit at 3 times my salary. How do I handle this on my ch 7 petition?

    #2
    Originally posted by maxfischer75 View Post
    My employer pays the premiums for a life insurance policy with a benefit at 3 times my salary. How do I handle this on my ch 7 petition?
    It sounds like a term life policy (pays when you die). If so there is not usually a cash out option to those, so there is no money that the trustee can take.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

    Comment


      #3
      It is not an asset. Insurance or proceeds from insurance is exempt anyway. Don't even list it. It is a non issue. You don't list coffee breaks, or a company picnic, so the policy is a benefit like health insurance. A non issue. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment


        #4
        However, if it's worth more than a certain amount, the "benefit" is taxable. That is done by imputing the income. It should already be included in your gross income.

        Since the policy is owned by your employer, you need not list it.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          My Hubby had a Employer-Paid Life Policy but now that he is unemployed can we purchase a life insurance policy for him or is that a no no before you declare?
          Chapter 7 filed 11/4/10 ---- 341 Meeting 12/1/10 ---- Discharge 1/31/2011.

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            #6
            Insurance is okay. Whether or not it's an allowable expense, is another thing. Also, if the insurance policy is whole life and has a present cash value, the Trustee might be interested in it if you can't exempt it.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment

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