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  1. #1
    Join Date
    Dec 2014
    Posts
    6

    Default How is an Interest in a Family Limited Partnership Treated in Bankruptcy

    My question involves bankruptcy in the state of Texas
    I revived a life insurance estate in the last 10 year ago. I put it in the Dang FLP. I have 90% interest in the FLP and I never use or touch it. What if I file bankruptcy chapter 7 now, can trustee liquidate it.?

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Life Insurance Estate Proceed Can Be Liquidate After I File Bankruptcy Chapter 7

    The following article has no page numbers so you'll have to count to the 17th page where you can read about family limited partnerships and bankruptcy.

    http://www.wysr-law.com/files/pre-ba...on_outline.pdf

    It's got some Michigan citations but it also discusses federal bankruptcy law.

    Might be some differences in Texas based on Texas law.

    But asset protection with an FLP is apparently not absolute and you should be going over your situation in great detail with a bankruptcy attorney.

  3. #3
    Join Date
    Dec 2014
    Posts
    6

    Default Re: Life Insurance Estate Proceed Can Be Liquidate After I File Bankruptcy Chapter 7

    Quote Quoting adjusterjack
    View Post
    The following article has no page numbers so you'll have to count to the 17th page where you can read about family limited partnerships and bankruptcy.

    http://www.wysr-law.com/files/pre-ba...on_outline.pdf

    It's got some Michigan citations but it also discusses federal bankruptcy law.

    Might be some differences in Texas based on Texas law.

    But asset protection with an FLP is apparently not absolute and you should be going over your situation in great detail with a bankruptcy attorney.
    So, after I filed banruptcy chapter 7 , my life insurance proceed can be liquidated by the trustee even I opened the FLP account in last 10 years? Please help me on this question. Thanks

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Life Insurance Estate Proceed Can Be Liquidate After I File Bankruptcy Chapter 7

    Quote Quoting Andydang
    View Post
    So, my life insurance proceed can be liquidated by the trustee even I opened the account in last 10 years
    I wouldn't draw that conclusion just yet.

    Consult a bankruptcy attorney for a proper evaluation.

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