Exempting the Cash Value of Life Insurance

[Notdoneyet]

Does Minnesota allow the exemption of cash value of a life insurance policy? I have received my Chapter 7 discharge and my case is closed. I ask this question because my petition included the cash value as an exemption and the loan against that cash value as a non secured debt. To my knowledge there were no changes to the petition. The Insurance Company is still listing both the cash value and the loan and they are charging me interest on the loan. Can I approach the Insurance Company about this with out fear of my policy being canceled?

[tcreegan]

Hi Notdoneyet,

this sounds like a good question for an attorney......

Put yourself in the Ins. Co. shoes....someone gets the loan discharged in a BK and then extracts the cash value....would you cancel their policy?

Be interesting how this pans out...post the results please!

Tom in Colo

[Notdoneyet]

Tom in Colo

I am not attempting to get the cash value. I would have to cancel my policy to do that and I do not want to do that. My goal is not to be paying interest on a loan that should have been discharged.

Notdoneyet

[tcreegan]

is not to be paying interest on a loan that should have been discharged

Me neither, kinda goes against that "fresh start" concept....

Good luck with it Notdoneyet, hope it works out for you!

Tom in Colo

[jnfrross]

Am I understanding correctly that a loan taken against a life insurance policy is dischargeable?

[Notdoneyet]

jnfrross

It was included with my petition and to my knowledge was a part of my discharge. That is why I am concerned that they are still charging interest. I am not looking for a shootout with the insurance company and the risk that they would cancel the policy. On the other hand I can't afford to be paying interest. I am hoping to hear from someone who has been though this and can tell what my next step should be. My lawyer for my Chapter 7 did not get an answer for me and now tells me that my retainer is used up.

Notdoneyet