Chapter 7 Asset Seizures
Date: Thu, 05/21/2009 - 19:35
I hope someone can answer my questions. First, if the total debt to be discharged is large (in the 10s of thousands) but the total value of all dollars in any bank accounts at any one time is $1000 or less - and they are the only remaining assets you have - will they court really take those funds? Do they really split that money up and send it to the creditors?
Second, if you have whole life insurance policies with little or no cash value because loans have been taken against them over the life of the loan, does the court seize those policies anyway? Will the insurance company cancel my policies?
I'm beginning to sort through this BK vs Settlement and have no choice but to go the BK route since I have depleted all funds and tangible assets in the past 18 months and have no solid, steady income. So settlement is not an option at this time and the delinquencies are growing and getting more serious. I now have 3 accounts at 120 days.....and I will need to take some kind of action in the very near future.
Any insight on the questions is very deeply appreciated.
Second, if you have whole life insurance policies with little or no cash value because loans have been taken against them over the life of the loan, does the court seize those policies anyway? Will the insurance company cancel my policies?
I'm beginning to sort through this BK vs Settlement and have no choice but to go the BK route since I have depleted all funds and tangible assets in the past 18 months and have no solid, steady income. So settlement is not an option at this time and the delinquencies are growing and getting more serious. I now have 3 accounts at 120 days.....and I will need to take some kind of action in the very near future.
Any insight on the questions is very deeply appreciated.
You really need to let us know what state you are in. Each stat
You really need to let us know what state you are in. Each state has a list of exempt assets that you get to keep in a Chapter 7 proceeding. The amount of debt discharged has nothing to do with it. I would suggest that you get a consultation with an attorney to get the best information for your situation. You should be able to get the appointment free, and it will probably last about a half hour, but at least then you will know where you stand legally.
Submitted by southernapostolic on Sat, 05/23/2009 - 08:33
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