2006-07-14 05:57:28 · 13 answers · asked by xlaorta 1 in Politics & Government ➔ Law & Ethics
More information is needed to answer this question. Generally, if your bankruptcy is discharged, then the funds go to the surviving spouse; however, if it is not, then it may go to the trustee for payment to the creditors. But, it may also depending on which chapter the bankruptcy was filed under, if the stay is in effect - all sorts of issues.
2006-07-14 06:02:21 · answer #1 · answered by D 4 · 1⤊ 0⤋
I wasn't aware that married couples could be made bankrupt as a single unit. Each person is seperate under the law. I am sure that they can both be made bankrupt as individuals. The answer to your question, I think, is that it would initially go to the beneficiary in the usual way, then, as a seperate issue and assuming the surviving spouse inherited the money, the creditors would probably have a claim via the trustee in bankruptcy. It very much depends how complex the bankruptcies are, complicated by joint debts etc. and many other possibilities.
Technically, at the time of death, the assurance policy wasn't an asset because it was contingent upon that person dying, this obviously couldn't be assumed. Actually more info. is required to answer your question fully.
2006-07-14 21:37:30 · answer #2 · answered by Veritas 7 · 0⤊ 0⤋
If they are jointly bankrupted, which is possible on joint liabilities, then if they would have enjoyed the policy in the future it may be the trustees in bankruptcy who will take the current surrender value, not the matured value. If they have assigned the benefit to the kids, and normally the amounts in premium are not likely to be preferential treatments, then the children will get it on maturity or on trust if maturity occurs before full capacity.
Usually as above if the policy would not form part of an estate, then normally its not included.
2006-07-17 10:41:46 · answer #3 · answered by logicalawyer 3 · 0⤊ 0⤋
In the UK I'm afraid that the beneficiary (assuming that they are named on the plicy) will be the spouse. Who will then have to pay that in to the bankruptcy agreement (assuming that they are an undischarged bankrupt) and whatever is left will then belong to them.
2006-07-14 06:06:45 · answer #4 · answered by nkellingley@btinternet.com 5 · 0⤊ 0⤋
Creditors have the right to claim for it regardless of who is named on the policy.
2006-07-14 12:00:55 · answer #5 · answered by jodie t 1 · 0⤊ 0⤋
antyasset should have been surended at the time of bankrupcy,if the life insurance was taken out after that ,or 5 years have past ,it would go to the living one, as long as it was made out to them
2006-07-14 06:04:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The bloody government of course. The official receiver will take it as an asset.
2006-07-14 11:44:13 · answer #7 · answered by deadly 4 · 0⤊ 0⤋
Whoever the beneficiary is listed on the policy.
2006-07-14 06:00:47 · answer #8 · answered by jaybird 4 · 0⤊ 0⤋
The one handling the bankruptcy if the other is the beneficiary.
2006-07-14 06:01:11 · answer #9 · answered by Puppy Zwolle 7 · 0⤊ 0⤋
The surviving spouse who then owes it to creditors.
2006-07-14 06:01:37 · answer #10 · answered by therego2 5 · 0⤊ 0⤋