Father died after filing WHAT NOW??? HELP!!!

[corcoran911]

My parents filed chapter 7 on April 1. My father died May 11. The lawyer is telling my mother she can't back out of the chapter 7 and she will lose any life insurance money that comes in. She needs that money to live on.

They were allowed to keep the house and the car and wrote off about 20k in cc debt. What happens now?? We need help and fast.

Please respond

[HHM]

Well if that is what the attorney said, however, in many circumstances, certain life insurance proceeds can be exempted (your attorney would have to amend the petition). And you can always file a Motion to dismiss the case (whether it will be granted or not is another issue), but your attorney is right, you cannot just back out of a chapter 7 on a whim.

[BrokeCh7]

Talk to a 2nd lawyer

Most lawyers will give you the first meeting free and you should see one. I would also see one who has been working in BKs for a long time.

I don't know about his life ins. but in California my attorney said "if i buy the winning Lotto ticket on my way to court to file this would be part of my bk, if i buy it the day after i filed this would be out of the bk and mine to keep." The date of filing your bk is a definative cut off date and anything after that filing is not part of the bk unless fraud is something the trustee is looking at.

Of course you will need to find the right lawyer that knows the laws around this and help your mother keep what is hers.

Good Luck

[corcoran911]

the attorney states that if you die within 180 days of filing then any life insurance is considered part of the settlement
i'm not sure what to do....
my mom needs that money to live on..

i don't think that this would be considered a whim.... we didn't know my dad would die.

the attorney stated that it was too bad she needed the money - she would just have to lose her house

any ideas?