Do I need to include 410K and life insurance policy amounts in a chapter 7 bankruptcy?

Asked over 1 year ago - Denver, CO

I am filing Pro Se for my chapter 7 bankruptcy and need to know if I need to include the account balance in my 401K, if so does this go under section 12 in Schedule B, if not where does this information go? Also, do i need to include my life insurance policy?

Attorney answers (6)

  1. Deborah F Bowinski

    Contributor Level 16

    13

    Lawyers agree

    Answered . Yes, you must list ALL your assets. And then you must properly claim the exemptions for what you own in order to protect it from the trustee and your creditors.

  2. Stephen Clark Harkess

    Pro

    Contributor Level 20

    10

    Lawyers agree

    1

    Answered . You need to list ALL your debts and ALL your assets. This is the first question the Chapter 7 Trustee is going to ask you and you must be able to truthfully state that you did.

    All property that is not real estate (houses, land, etc) is listed on Schedule B. This includes life insurance policies that have a cash surrender value. If you want to keep the property you also need to list the appropriate exemption on Schedule C. If it is not exempt then the Chapter 7 Trustee will take the property and use it to satisfy your debts.

    You can reach Harkess & Salter LLC at (303) 531-5380 or info@Harkess-Salter.com. Stephen Harkess is an attorney... more
  3. Manuel Alzamora Juarez

    Pro

    Contributor Level 20

    10

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . Yes, include your information on line 12 in schedule B. If you have a whole life insurance policy with cash value, you must disclose that too. If you have any other type of insurance, disclose it. Better to err in the side of full disclosure than to omit an item. Best of luck

    This answer is provided by Manuel A. Juarez, Esq., 'El Abogado Hispano de California, and it is of a general... more
  4. Dorothy G Bunce

    Pro

    Contributor Level 20

    10

    Lawyers agree

    Answered . If you were thinking you could get away with lying on listing any asset in your bankruptcy, think again. Or better still, find a competent bankruptcy attorney to do your thinking for you.

    Going into bankruptcy is like going into an audit with the IRS. The bankruptcy court is part of the US Justice Department & is a sister agency to the FBI. There is very little that even a cursory review about you on the government databases won't reveal, from where you have bank accounts to property you own overseas, to what you have covered on your homeowners insurance policy.

    Hope this perspective helps!

  5. E Dwight Taylor

    Contributor Level 13

    6

    Lawyers agree

    Answered . It is a serious mistake to file bankruptcy without competent counsel. Do yourself a favor and find a good lawyer to heip with this.

    This general response is not intended to be legal advice because I don't have all the facts. The particular facts... more
  6. Marc Gregory Wagman

    Contributor Level 17

    4

    Lawyers agree

    Answered . Hiring an attorney is advisable and very wise. It is like doing brain surgery on yourself even if you are a doctor. If a mistake is made it sometimes cannot be undone if it is serious. Hiring a competent attorney will protect you and your assets. All assets and liabilities must be listed and fully disclosed. If you don't exempt the property the trustee can also liquidate it to pay creditors.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The... more

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