life insurance payment received during Ch. 13
Posted: Fri Dec 21, 2007 9:20 am
Sounds like a Sunahara motion may be the appropriate next step depending on the change in budget following spouses passing.
Peter
Mark JM wrote:
not sure if this got posted before, so I'm resubmitting...
Here's an interesting one which is probably pretty common, but I haven't run into it before:
Let's say H&W file a Ch. 13 case and during the plan payments, H dies. H had several life insurance policies in W's favor. Assume the payout on the life insurance is enough to pay 100% of the unsecured claims, and also assume that the current Ch. 13 case was confirmed at a 25% payout.
Question: Are those life insurance proceeds exempt (they were unmatured on the petition filing date, right?) (This would be using the 704 series exemptions)
If not, must the surviving debtor pay all of the life insurance proceeds to the Trustee, or just the amount sufficient to pay the 25% required by the Plan?
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Sounds like a Sunahara motion may be the appropriate next step depending on the change in budget following spouses passing. PeterMark JM <bklawr@yahoo.com> wrote: not sure if this got posted before, so I'm resubmitting... Here's an interesting one which is probably pretty common, but I haven't run into it
before: Let's say H&W file a Ch. 13 case and during the plan payments, H dies. H had several life insurance policies in W's favor. Assume the payout on the life insurance is enough to pay 100% of the unsecured claims, and also assume that the current Ch. 13 case was confirmed at a 25% payout. Question: Are those life insurance proceeds exempt (they were unmatured on the petition filing date, right?) (This would be using the 704 series exemptions) If not, must the surviving debtor pay all of the life insurance proceeds to the Trustee, or just the amount sufficient to pay
the 25% required by the Plan? ______________________Mark J. MarkusLaw Office of Mark J. Markus11684 Ventura Blvd. PMB #403Studio City, CA 91604-2652(818)509-1173 (818)509-1460 (fax)web: http://www.bklaw.com/This Firm is a Qualified Federal Debt Relief Agency___________NOTICE: This Electronic Message contains information from the law office of Mark J. Markus that may be privileged. The information is intended for the use of the addressee only. If you are not the addressee, note that any disclosure, copy, distribution or use of the contents of this message is prohibited.IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or
in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).
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