How does a Bankruptcy affect the cash surrender value in my life insurance?
The cash surrender value exemption is $10,775.00 plus the unused portion of the homestead exemption. Term life insurance without cash surrender buildup is fully exempt. Remember, the value of an insurance policy is not what the payment would be to a beneficiary, but the present cash in hand, or loan value of the policy. 9. How does a bankruptcy affect my checks for monthly social security, unemployment compensation, disability, unemployment benefit, alimony and support, and pensions? Section 522 of the Bankruptcy Code exempts the right to receive any of the above checks free of creditor claims. In the case of checks for alimony, support, private pensions, and the like, the payments must be reasonably necessary for the support of the debtor and any dependent of the debtor, which is usually the situation. 10. Do I have to give up my financed automobile if I file bankruptcy? No. You have choices here. You can continue making your payments as if no bankruptcy were filed and everything stay
