Legal Question in Bankruptcy in California

Goverment life insurance

I worked as civil on the Marine Base for 35 yrs. And have my life insurance thorough the Federal Employees group life.

I have no bene. to give the money to when I die. So I would like to use my Life Insurance to payoff my debts.

Could The Bankruptcy courts order my Federal Employees Life insurance company to disburse my life insurance to them to payoff my debt. ?

That is what I like them to do.


Asked on 2/03/06, 3:20 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Goverment life insurance

I assume you're considering a Chapter 7 (liquidation) bankruptcy. The life insurance benfit does not belong to you while you're still alive. More than likely -- and correct me if I'm wrong -- your life insurance is term life which means that you have no equity whatsoever in the policy itself. If you name no beneficiary for your life insurance policy, then when you die the money will pass to your estate and be distributed according to your will.

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Answered on 2/03/06, 3:50 pm


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