Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Are you the insured or the beneficiary? If you are the insured, how much is the cash value?
Is $40,000 the cash value of the policy?
When the insurance company "lent" the money to you, they actually gave you the cash value of the life insurance policy. This means if you file a Bankruptcy, you will not be able to eliminate the "loan" by having your cash value restored.
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