Should I file Ch.7 or Ch.13?

[limegreen260]

$134 per month wouldn't put much of a dent in my unsecured debt. It would only payoff 15.5% of the total.

I'm not dead set against Ch.13. The failure rates of Ch.13 seems futile though.

As for the term insurance...If I die who's going to take care of my family and pay off my house, especially after BK?

Is Life insurance a luxury in a trustees eyes?

Maybe I'm wrong?

Checked with my attorney and he said to absolutely get life insurance policies on both of us. He said it was allowable and would not raise a red flag at all as long as the policy amount were reasonable.

[hamburgervol]

Checked with my attorney and he said to absolutely get life insurance policies on both of us. He said it was allowable and would not raise a red flag at all as long as the policy amount were reasonable.

In that case 2 policies on both my wife and I would help us pass the Means.

I guess the next question would be what is reasonable? $250,000..$500,000...$1,000,000. My guess is what it would take for you to continue to have a normal life and not suffer any undue financial burden due to a death. My wife wouldn't be able to replace my income with me gone so I would think my policy should be higher.

[limegreen260]

Good question. What we've discussed is enough for the surviving spouse to be able to pay off all of our debts, plus funeral expenses, and a little left over to have a decent nest egg. Not enough for living the high life but enough that the remaining person doesn't have to worry about finances in addition to coping with the loss of a spouse for a year or so.

[SuzieBK]

The other thing to consider, if you have children and one of the parents is a stay-at-home parent, is that you would most likely need to hire a full-time, live-in nanny. So even though one spouse might not be bringing in any/much income, replacing him/her would be pricey.