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Possible life insurance cash after ch7

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    Possible life insurance cash after ch7

    My 341 is this coming week. Due to my health I am thinking of taking an accelerated death benefit option on my life insurance so I can fix up my house so that after I pass on my daughter won't have to deal with it, just sell it.

    I know the money from this type of source is non taxable and not considered income but my question involves the chapter 7. Would they come after this money? Would it be better to wait until fully discharged to apply for this?

    I am a no asset chap 7.

    #2
    I'd wait until discharge. The policy itself may be exempt but if converted to cash, it {the cash} may not be exempt. Talk with your lawyer before doing anything.

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