I live in Wisconsin. My spouse had a failed general contractor business in 2006 (LLC) which eventually led to filing a personal chapter 7 jointly (early 2007). Two creditors filed appeals (Theft by contractor), we were unable to afford lawyer fees to defend ourselves having just paid every penny of our remaining savings+ to file chpt 7. Both plaintiffs were therefore awarded default judgements which were then trebeled amounting to nearly $500,000. It may as well be 5 million. But that is not the issue.
Sadly, our 20 year old son chose to end his life 10 weeks ago and I have two small life insurance policies totaling 15k. If I collect this money it would do nothing to reduce our debt, which most likely will never be able to be paid in full.
If I collect this money can it be seized? If yes, how much of it? Should I wait it out and collect several years from now and pay the interest taxes, or leave it to my estate (I have a daughter)?
No one seems to know the answers to these questions. Yet I find it hard to accept the idea of "giving" it to individuals that made some rather inflated and partially false claims. It does not seem a just trade.
Thank you in advance for your assistance.