I filed Chapter 7 bankruptcy in Ohio on 8/2/13 and my mother passed away last week. I know I am "disinherited" from the estate, but I learned that I am a beneficiary on two life insurance policies. One is a group policy. The other an individual. I am not sure if the individual policy has a clause prohibiting the proceeds to be used to pay creditors of the beneficiaries, which appears to be quite relevant based on the Ohio Revised Code. Will I be able to keep the $ from the group plan since in Ohio you must choose Ohio exemptions when you file and proceeds from a group policy appear to be exempt? Regarding the individual plan, my assumption is that the bankruptcy estate will take this unless there is a clause prohibiting creditors from taking it. Do you know?
Hi - my name is XXXXX XXXXX X am a Bankruptcy and Consumer Protection attorney here to assist you.Your understanding is correct. The proceeds from the group life insurance plan are exempt from the Bankruptcy estate, and the proceeds from the individual life insurance plan are exempt if, and only if, there is a clause in the policy that prohibits the proceeds from being used to pay creditors.Once you have determined whether or not there is such a clause, you will have to file an "Amended Schedule B" to include the life insurance proceeds from both policies, and an "Amended Schedule C" to include the exemptions that will apply to your life insurance proceeds. I think this is what you wanted to know. If not, please let me know.Thank you.
So, you are sure that even though the Ohio bankruptcy filing was on 8/2/13 as I stated in my question, an amended filing of schedules B (and C) should be made to the filing as of that date to include assets (and exemptions on schedule C) that did not exist (insurance policy proceeds) until my mother passed away in November, 2013?
You were wrong. The asset did not exist at the time of filing so an amendment cannot be made to that filing.
OK, if I end up being able to keep all or a large part of these policies I WILL give you a bonus. But I need to get a second opinion from another attorney before I allow mine to just hand over the $ to the trustee for distribution to the creditors.
In Ohio, is there a deadline to file amendments to these schedules? e.g. can it be done after discharge? Is it required to be done w/in a certain amount of time from filing, the date of the hearing (meeting of the creditors), discharge? I mean, there must be some kind of deadline. I don't suppose I can do this 5 years from now. What is that deadline date in Ohio?
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