How Life Insurance Affects Bankruptcy

In lieu of the recent economic recession, millions of people are experiencing financial troubles. Unemployment rates soar while the housing market collapses, causing many families to go into debt. While one way to provide protection for your family in the event of an emergency is by purchasing a life insurance plan, you may not be able to ensure their security if you are knee deep in debt.

If you are struggling to remain financially stable, you may want to consider filing for bankruptcy. To learn more about the benefits of bankruptcy, contact a West Palm Beach bankruptcy attorney from Eric N. Klein & Associates. Call 516-353-2800 today to schedule a free initial consultation.

Is Life Insurance Exempt?

Depending on various circumstances surrounding your bankruptcy case, your life insurance policy may or may not be exempt. When purchasing a life insurance policy, it is imperative that you make certain that your agreement says it is exempt from creditors. Frequently, the policies that are protected from bankruptcy are perceived as part of an investment portfolio, much like a 401K or a mutual fund.

While bankruptcy may require you to forfeit some of your assets, you may be surprised to learn how many exemptions you are allowed.

Contact Us

Bankruptcy proceedings are extraordinarily complex. In order to ensure that your best interest is at the center of your bankruptcy case, you should consult an experienced bankruptcy attorney. Contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates by calling 516-353-2800 today.