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  1. #1
    Join Date
    Dec 2014
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    6

    Default Can life insurance proceed be protected in bk Chapter 7

    I have 2 questions. I need your help to explain. Thanks


    1) I received a life insurance proceed last 15 years ago and I put it in a single member FLP account. What would happen if I file bk chapter 7? Does trustee liquidate it?

    2) why the judge did not sign the judgment on the day of judgment hearing? Is that a good sign he might reduces the amount of judgment ?

  2. #2
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: Can life insurance proceed be protected in bk Chapter 7

    Quote Quoting Andydang
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    1) I received a life insurance proceed last 15 years ago and I put it in a single member FLP account. What would happen if I file bk chapter 7? Does trustee liquidate it?
    I assume that FLP stands for family limited partnership. If that’s the case, I’m not quite sure what you mean by single member FLP account since a partnership, by definition, has at least two participants. In any event, the answer depends on the details of the FLP. If you are one of the partners in the FLP, then your interest in the FLP is an asset of the bankruptcy estate and the trustee could potentially seek to liquidate the FLP to get your share of the FLP to pay creditors. If you are indeed the sole “partner,” then its significantly more likely that this would occur since no one else’s interests would be affected by liquidation of the FLP. You’d need to ask a bankruptcy lawyer to look over the FLP and your circumstances to advise you what is likely to happen should you file bankruptcy.

    Quote Quoting Andydang
    View Post
    2) why the judge did not sign the judgment on the day of judgment hearing? Is that a good sign he might reduces the amount of judgment ?
    No way any of us could tell why the judge didn’t sign it that day. We don't know anything about the lawsuit or even in what court it was litigated. But if the judge or jury reached a decision on the amount of the judgment, the delay in signing it won’t change the amount of the judgment.

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