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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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My husband and I filed for bankruptcy on 3/5/10. At the time

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My husband and I filed for bankruptcy on 3/5/10 in CT. At the time my mother was fragile but in no way did we anticipated her death, which occurred 5/17/10. there were two life insurance policies that I'm part beneficiary of. Is there any way I can keep that or will the trustee take it all?
I am sorry to hear about your loss, my condolences.
It might be possible. If the provisions of the insurance set out that it is protected from your creditors, then it will be protected from trustee liquidation.

Show your attorney the policy, and they can amend schedule B & C accordingly.
Otherwise, if you have any available wildcard exemption left ($1000) you can amend schedule C to add that as well.

The insurance statute is below for your reference.
Good luck

Sec. 38a-454. (Formerly Sec. 38-162). Proceeds of insurance policies and annuities may be held in trust. Any domestic life insurance company shall have power to hold the proceeds of any policy issued by it under a trust or other agreement upon such terms and restrictions as to revocation by the policyholder and control by beneficiaries and with such exemptions from the claims of creditors of beneficiaries other than the policyholder as have been agreed to in writing by such company and the policyholder. Such insurance company shall not be required to segregate funds so held but may hold them as a part of its general corporate assets. Similar terms, restrictions and exemptions, for the benefit of any payee other than the purchaser, may be included by any such company in any annuity contract or any agreement issued in connection therewith or supplemental thereto. When any foreign or alien life insurance company doing business in Connecticut holds the proceeds of a life insurance policy or annuity contract under any trust or other agreement consistent with its charter or the laws of its domicile, beneficiaries of such trust or other agreement shall be entitled to exemptions from claims of creditors as hereinbefore provided to the same extent as if the trust or other agreement were entered into with a domestic life insurance company.
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