Is my life insurance an asset? Will I be required to cash them in?
Life insurance can be considered an asset of your bankruptcy estate if the policy has "cash value." Term insurance policies do not have cash value and are therefore non affective of your bankruptcy. Certain types of "whole life" or "universal life" policies do have cash value but are typically exempt from capture by your Trustee if they are payable to and for the benefit of a surviving spouse of dependents.
