How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask cfortunato Your Own Question
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
Type Your Bankruptcy Law Question Here...
cfortunato is online now
A new question is answered every 9 seconds

Ohio Chapter 7 bankruptcy

This answer was rated:

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 I 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.

cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

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?

Customer: replied 3 years ago.

You were wrong. The asset did not exist at the time of filing so an amendment cannot be made to that filing.

Schedule B is supposed to include all assets of the Bankruptcy estate - not just the Bankruptcy estate assets that the debtor owned at the time of filing. There is no rule that says Schedule B is supposed to include only those assets the debtor was entitled to at the time of filing.
Customer: replied 3 years ago.

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?

There is no deadline to file Amended Schedules. However, if the Schedules are filed after your Bankruptcy case is closed, you will have to file a motion to have your case re-opened before filing the Schedules.
This applies to all states, as Bankruptcy is a federal program.