term life policy as an expense

[floridian]

i am about to drown in a 13, if i dont find more expenses... a paralegal, told me to go buy a term life insurance policy..

anyone else tried that one? if so, how long do i have to pay on it to claim it.? how much can i claim?

[Heli]

I don't know the max amount you can claim but I do know that "term life" is an allowable expense. I found this on the doj site which kind of help a bit.
http://www.justice.gov/ust/eo/bapcpa...T_Policies.pdf

[DeadManCrawling]

This is a case by case basis. If you took out a five million dollar policy the month before BK, there would be questions raised, of course, and it may not be allowed.

In my case, I have three million dollars in life insurance (term). However it has been in pace for five years now. Attorney says this will not be an issue, since I obtained the policy at a time when I had a very high income, and well before we were insolvent

Doing this last minute may raise problems.

[OhioFiler]

DMC is spot on as usual.

Congress and the courts recognize life insurance is a prudent expense but any trustee who sees a recent increase in term life premiums that is the only difference between a 7 and 13 may disallow the expense.

[Flamingo]

Any expenses taken on now and not long-term will be eyeballed and could be a problem. My term life policy was in effect over two years before we filed and was not a problem. You are feeling the effects of the new law. The new law that came into effect 10/05 pushes more people into Chapter 13s that can afford it.