For example, a term life insurance policy doesn’t produce any money until you die, so it’s little more than a monthly bill to be recorded on certain bankruptcy schedules.
If you receive life insurance money within 180 days of filing for bankruptcy it can become part of the bankruptcy estate. Timing is as important to bankruptcy cases as knowledge of the law. As Philadelphia bankruptcy attorneys it’s our job to make sure you’re filing the right bankruptcy type at the right time.
Failing to mention them is a bad move, as they can be left out of vital paperwork. This opens you up to accusations that you’re trying to hide assets, which can lead to a charge of bankruptcy fraud. At best, it could mean your case gets dismissed, which keeps you from getting the fresh start you’re trying to achieve.
If you do everything right, bankruptcy could open a path towards retirement by reducing your monthly obligations. This means you stand a chance of being able to live on those funds when the time comes.