I have a 1 Million dollar term life policy and a disability income policy that I had to sign collateral assignments on in order to receive a business loan. I have also signed a blanket lien on all the business assets. My business which is failing currently owes the bank 451,000. The equipment has a value of about 30,000 and other assets of about 10,000. Since I have an injury that may prevent me from being able to work one day and I recently had a health scare in the last month (thank goodness it turned out OK), I am keenly aware of the possibility that I may need these policies in the future. Will bankruptcy discharge or wipe out the assignments? My thoughts are that it would since I would no longer owe anything to the assignee after discharge.