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Beneficiary of Life Insurance Trust?

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    Beneficiary of Life Insurance Trust?

    My husband and I are currently 7 months into a 60 month plan (old laws). My FIL recently passed away, and I think I recall him having a life insurance trust of which my husband was a beneficiary. If this is the case, the proceeds would more than likely be significantly more than what we owe on our plan.

    My question is, if we do receive these monies, can we simply request a payoff from the trustee and be done with everything? I know because we would be paying it off before that magic 36-month mark, we would go from paying 5% on unsecureds to 100%, but that's fine with me. I'd rather know we payed everybody what we owed them anyway. But will they allow us to pay everything off, or will the size of the estate change things? Can they dismiss our plan entirely? I don't mind paying everyone 100%, but I sure don't want to have to pay accrued late fees and interest too.

    Thanks so much for any input!

    Filed Ch 7 (Pro Se) - 9/2005
    Converted to Ch 13 (w/Atty) - 2/2006
    Confirmed (w/5% to unsecureds!) - 5/2006
    Payments Remaining ....... 37

    #2
    I would talk to your lawyer. If you are coming into money, I would think you can pay off the Chapter 13, especially since you filed under the old laws.
    Date Filed: 12/19/2004
    341 Meeting: 2/8/2005
    Date Case Confirmed: 7/12/2005
    Closed on Refinance/Chapter 13 Buyout 8/23/06

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