Sheppard Law Offices
Columbus, Ohio Bankruptcy Attorney Kenneth L. Sheppard, Jr.
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FREE Debt Relief Consultation Call (614) 523-3106 or (877) 505-9455
Sheppard Law Offices
TALK TO AN OHIO BANKRUPTCY ATTORNEY TODAY (614) 523-3106
If you have life insurance and are considering filing bankruptcy in Ohio there's good news. First, paying for life insurance may help you to qualify to file chapter 7 bankruptcy. The premium that you pay for Term-Life insurance applies directly to reduce your current monthly income under chapter 7 bankruptcy means test, thus increasing the likelihood that you will qualify to file chapter 7 bankruptcy. Next, if you have a Whole Life Insurance policy you can keep the policy if certain conditions are met.
If you have a non-cash value policy or Term Life insurance, since there is no cash surrender value to the policy, there is no reason for the Ohio bankruptcy trustee to take it. Therefore, your term life insurance policy can stay in force. When considering filing for chapter 7 bankruptcy in Ohio, it is a good idea to keep that term life insurance policy in force due to its favorable treatment under the means test.
There are two major areas of concern when dealing with Whole Life insurance policies. The first is the cash surrender value of the policy, and if it will be taken by the bankruptcy trustee to pay your creditors. The second is keeping the policy in force for the death benefit, the amount that your beneficiary will receive in the event of your death.
The good news is that if your beneficiary is a dependent (your spouse or children), then the cash value of the policy is exempt. This also means that you will be able to keep the policy in force for the protection of your family in the event of your death.
In the event that your beneficiary is not a dependent, the trustee can cash the policy for its cash surrender value and apply it to the bankruptcy estate. This non-exempt status will also apply to a policy that builds a cash value that you have on the life of a child. The news isn't all bad, since there are exemptions that can be applied to cash value policies. In a case where you or your child may not qualify to get a new policy or there is another reason that you should not give up the policy, your Columbus, Ohio bankruptcy attorney at Sheppard Law can discuss alternatives with you which may allow you to keep the policy in force, such as taking a policy loan to provide the bankruptcy estate.
Are you are considering filing bankruptcy and want to know if you can keep your life insurance? Contact Columbus, Ohio bankruptcy attorney Kenneth Sheppard, Jr. at (614) 523-3106 for a free consultation. When you schedule a consultation at Sheppard Law Offices you can expect to meet with an experienced, and compassionate debt relief attorney. For your convenience we have bankruptcy law offices in Columbus, Canton, Newark, and Mt. Vernon, Ohio. Your Columbus, Ohio Bankruptcy Attorney will meet with you and discuss the needs of your particular case so you can recover from the stress of overwhelming debt. We provide affordable bankruptcy filing assistance for our clients.
Sheppard Law Offices
The Columbus, Ohio bankruptcy debt relief and taxation law office of Sheppard Law Offices, LPA is conveniently located just inside I-270 off of Cleveland Ave. Our offices provide a short drive from throughout Central Ohio including counties of Franklin, Delaware, Knox, Marion, Licking, & Fairfield. We regularly serve Debt & Tax needs of clients from Columbus, Westerville, Bexley, Dublin, Sunbury, Delaware, Fredericktown, Johnstown, Centerberg, New Albany, Gahanna, Pickerington, Grandview, Upper Arlington, Clintonville, Groveport, Pickerington, Pataskala, Reynoldsburg, Groveport, Lewis Center, Worthington, Granville, the Short North, Hilliard, Plain City, Grove City, Newark, Mt. Vernon, Canal Winchester, and Lancaster.
Columbus Ohio Office
2600 Tiller Lane, Suite A
Columbus, Ohio 43231
Telephone: (614) 523-3106
Newark, Ohio Office
843 N. 21st Street, Suite 108
Newark, Ohio 43055
Telephone: (740) 345-7138
Belden Village Tower, 200
Canton, Ohio 44718
Telephone: (330) 409-2876
Mt. Vernon, Ohio Office
11 West Gambier Street
Mt. Vernon, Ohio 43050
Telephone: (740) 392-0404
We are a debt relief agency. We help people file for protection under the U.S. Bankruptcy Code.