Loan Against Life Insurance

Optimistic09

Member

Bankruptcy Newbie

Joined: Apr 2009

Posts: 37

State: Minnesota
#1

Loan Against Life Insurance

04-23-2009, 09:48 AM

One debt is a loan against a life insurance policy. The cash value of the life insurance is equal to the loan debt.

Is this debt discharged just like an CC debt. What happens to your life insurance policy?

Feb 2010 - Filed Chapter 7
March 2010 - 341 Meeting
May 2010 - Discharged
June 2010 - Closed
Tags: None
Minnymouth

Senior Member

Bankruptcy Guru

Joined: Sep 2004

Posts: 5515

State: Kentucky
#2

04-23-2009, 10:55 AM

Good possibility the life insurance policy will become "null and void"..... read your fine print on your policy about repayment. Also it may be a bill that cannot be discharged. Some state laws vary on this.

Minny

"It's amazing the paths that our feet sometimes follow in life".

My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.
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