QUESTION
If I file a bankruptcy by myself, can I use the 704 exemption, and double its value, to protect the $26k (or would it be the 29k)?
Asked on Sep 22nd, 2014 on Bankruptcy - Nebraska
More details to this question:
I have a whole life insurance policy, and I am going to file a Chapter 7 bankruptcy. I am married too. The policy has a cash value of $29,000 and the cash surrender value says it is $26,000.
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Why did you post this on an Ohio bankruptcy site? The 704 exemption is California law not Ohio law. I'd need to know a lot more about your situation before I could make a recommendation for you but the 704 exemption (doubled for marriage - assuming that applies to you, it might not) will only protect $22,000 of the cash value - the trustee will force you to sell the policy for get at the $4,000 above the exemptions. But the 703 exemption might protect the whole value.
Answered on Sep 24th, 2014 at 11:30 PM
Derek W. Freeman
In Colorado the exemption is for the cash surrender value of the life insurance policy. The amount you can claim as exempt is $100,000 so in your case your policy is exempt.
Answered on Sep 23rd, 2014 at 7:04 PM
The exemption for life insurance contacts is found at Neb. Rev. Stat. ?44-371. Depending on when the policy was established the exemption should be sufficient to protect the policy.
Answered on Sep 23rd, 2014 at 7:03 PM