Our small corp. is facing bankrupcty, can our creditors take contoll of life insurance policies?

Question

We have policies on our children for 15,000 each, my husband is insured for 200,000. Myself for 100,000 and we have one on my mother in law for 100,000. No one is sick. Should we change beneficeries to our kids before we file, just to be careful?

Answer 1

If the corp owns the policies, then yes they will attach them. If you are the owner, then they are personal property.

Answer 2

Even if the bank accept your offer you are going to pay high interests. If your corp had taken an overdraft, then they will calculate when all your policies are going to mature and calculate the interests for your amount for that date. in the end you cannot clear the loan as well as loose all your policies. You have to try another way.

Answer 3

no matter who owns the policies, they are protected from creditors.

Answer 4

You really should contact a bankruptcy attorney for this kind of information.

Your answer will really depend upon the state where your corporation is located and life insurance policies.