Question on life insurance and chapter 7 bankruptcy

[DAVID7147]

Hello,

I will be filing a chapter 7 bankruptcy and I need to know what happens if living in New Hampshire I receive $100,000 in life insurance proceeds from a direct relative who could pass away during the 6 months of waiting for bankruptcy to be discharged.

Do I lose the $100,000 to the chapter 7 bankruptcy? The bankruptcy is for $700,000.

I will be using New Hampshire exemptions.

Thank you for your response.

[SunshineGal]

Generally speaking, life insurance received within 180 days of the filing date becomes property of the estate. There are exceptions though, depending on your state laws and possibly how the life insurance is written. You want to discuss this with an attorney prior to filing.

SG

[AngelinaCatHub]

Research here and with your lawyer's advice: Insurance / Annuities: Fraternal society benefits, unlimited amount [402:69]; firefighters insurance, unlimited amount [402:69]; homeowners insurance proceeds up to $5,000 [512:21(VIII)]

http://www.bcsalliance.com/debt1_newhampshire.html

Look up your local laws listed in this quoted link for more detailed info. Hope that the person lives beyond your bk long enough. Best to you (and him of course). 'Hub