A couple decades ago, while I was still underage, my parents took out a loan against a Country Companies life insurance policy they had on me. Currently, the loan is still at about $500. I believe the payment is supposed to be about $80 a year.
However, when I came of age, the policy, and hence the loan, went into my name. If my parents do not make the payment on the loan (and they have forgotten the last 2 times!) the letter asking for payment comes to me.
How should I handle this in my bankruptcy? While it isn't really MY loan since it was taken out without my knowledge or consent years ago, the ins co certainly seems to believe I am liable. Must I list it as an unsecured debt? Should I reaffirm it? My parents are unable to pay off the full amount at this time.
However, when I came of age, the policy, and hence the loan, went into my name. If my parents do not make the payment on the loan (and they have forgotten the last 2 times!) the letter asking for payment comes to me.
How should I handle this in my bankruptcy? While it isn't really MY loan since it was taken out without my knowledge or consent years ago, the ins co certainly seems to believe I am liable. Must I list it as an unsecured debt? Should I reaffirm it? My parents are unable to pay off the full amount at this time.
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