I have both a bankruptcy law and insurance law question. I am presently in chapter 13 bankruptcy and only have 5 months left before final monthly payment and discharge. I live in California. My father recently passed away and named me as a direct beneficiary in his life insurance policy. I will probably receive about 10k in the policy. As far as I can tell, there is no specific language in my plan/filing that says I need to inform the trustee
of receiving the policy. As I understand it, I only need to do this within 180 days of filing according to the by code
. After that, I am not obligated. The claim form for insurance company does however ask that I assert whether or not I am in "bankruptcy proceedings", which is a very vague term.
My questions are as follows:
1. Could the insurance company contact the trustee and inform him of payout if I don't?
2. Legally could the trustee seize these monies according to bk law (and likelihood?)
3. Another approach I was thinking would be to delay my insurance claim for 6 months, for after I get my discharge. Is there a statute of limitations
on making life insurance claims and are there any additional risks in considering delaying the claim for this period of time?
I ask these questions because I do not presently have an attorney, he has passed away and I do not want to spend thousands to address this one matter. Can anyone give sound advice on this matter? I would really appreciate it.