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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My wife and I are in a Chapter 13 bankruptcy , our home is

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My wife and I are in a Chapter 13 bankruptcy , our home is in foreclosure and we owe the IRS money on the 2nd quarter of 2002 941 taxes.

The bankruptcy was filed on April 23, 2010 and payments to the court's trustee are being paid to the Trustee now and for 60 months from the date of filing.

I just found out that I have a terminal illness and that, on the outside, I have around 2 years (or less) to live. I will certainly be dead before the termination of the bankruptcy.

My wife is going to need my Life Insurance money. How do I protect that money so that none of the creditors (Chapter 13 creditors; the mortgage company; the IRS) can get any part of it?

Jim
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Life insurance proceeds are exempt (protected) from the Bankruptcy estate. Florida Stat. 222.13.
However, there is nothing you can do now to protect your wife's life insurance proceeds. If, and when, she does receive those proceeds, she or your attorney can file an Amended Schedule C adding them, thereby indicating that those proceeds are exempt.

I think this is what you wanted to know. If not, please let me know.
Thank you.
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