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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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I live in FLorida. My husband and I filed chap.13 bankruptcy in 2009. He died in Dec 201

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I live in FLorida. My husband and I filed chap.13 bankruptcy in 2009. He died in Dec 2012. (1) Am I responsible for debts solely in his name? Life insurance policies named me as beneficiary. (2) Can the proceeds be taken to pay the balance of his debts or my debts remaining in the bankruptcy? I found this on the internet, "The proceeds of a life insurance policy payable to a specific beneficiary are fully exempt. (Fl. Stat. 222.13.)" (3) Will I be allowed to pay the balance owed on the debts in my name without the court going up on the percentage granted creditors because of the life insurance proceeds? Thank you.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

Sorry this took so long! (Website problem.)

cfortunato :

1) Since Florida is not a Community Property state, you cannot be held liable for any debts that were in your husband's name only.

cfortunato :

2) Because you are not liable for your late husband's debts, and because life insurance insurance proceeds are exempt from collection for debts (even if you could be held liable for your late husbands debts), your life insurance proceeds cannot be taken to pay debts that are in your late husband''s name only.

cfortunato :

3) The total amount paid into the Bankruptcy court cannot increase to reflect your life insurance proceeds.

cfortunato :

Since your husband passed away while you were in the middle of a Bankruptcy, you may be able to have the Bankruptcy dismissed. But if you do not dismiss the case, the payments will remain the same as, and the debts in your husband's name will be paid the same as, they would be if your husband had not passed away. This is pursuant to Bankruptcy Rule 1016.

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