Can I keep my insurance policies in a bankruptcy in New Jersey?
What will happen to my term life insurance policy?
Term life insurance is not an issue in bankruptcy as it has no cash surrender value. As long as you continue making payments on your term life insurance, your coverage will continue.
What if my life insurance has a cash surrender value?
If your life insurance policy has a cash surrender value, you can protect a substantial amount when you file Chapter 7 bankruptcy in New Jersey. The exact amount that you are allowed to keep will depend on your other assets.
If you have a life insurance policy with a substantial cash surrender value that you would lose in a Chapter 7 bankruptcy filing, you can protect and keep the policy by filing Chapter 13 bankruptcy.
It’s always important to disclose all of your assets to your bankruptcy attorney. If you don’t tell us about your assets, we can’t take steps to protect them.
Contact Our Paterson Life Insurance And Bankruptcy Attorneys
Let us get you back on your feet so you can get on with your life. Call our experienced Essex County, New Jersey, bankruptcy lawyers today for a free one-half hour consultation at 973-414-8069. Our lawyers serve Essex, Union, Hudson, Passaic, Bergen, Morris, Middlesex, Sussex and other New Jersey communities.