Life insurance cash value

I'm sorry Christine....and every one else...but I don't know where to post this.

My grandparents are thinking of filing bk ch 7. They both have life insurance policies with cash value....maybe a total of around $5000.00 did anyone here or do you know anyone that had to cash in their life insurance policy and hand over the proceeds to the trustee???????

I had thought I would not post here anymore but I'm over it now. I can't help but to come here everyday for more answers.

I'm slowly learning

There's a lot to learn.

Unfortunately, I don't have an answer for you. Most likely the cash value is considered cash, but it may depend on the policy, what you'd ACTUALLY get if you cashed it in. And of course EACH state has their own exemptions, and I've seen some strange ones like 6 months food supply.

They should really see a BK lawyer (the free consultation) and find out if it's a problem. If so, they should cash it in and pay their insurance, utilities, buy groceries, fix the car, fix the house if they own it, stuff like that and then file.

It's not a whole lot of money, easy to use up, especially when you're broke.