Insurance Exemptions During Bankruptcy
Debtors in Alabama may use certain exemptions during bankruptcy proceedings to protect some of their insurance policies. These exemptions help debtors hold on to important financial benefits that can significantly improve their future financial safety. Without these insurance benefits, a debtor may go through bankruptcy only to find that their remaining finances are unprepared to handle certain expenses.
In some cases, experienced lawyers may be able to help you find exemptions during your bankruptcy case that can help make your life easier in the future. For more information regarding your rights and options as a debtor in bankruptcy, contact the Birmingham bankruptcy attorneys of Greenway Law, LLC, at 205-324-4000 today.
Exemptions for Insurance Policies
Debtors facing bankruptcy can lose most of their assets and property when they go through bankruptcy, especially in chapter 7 proceedings. However, filing for bankruptcy can also clear out much of their debt. With the assistance of certain exemptions, the government allows these debtors to hold on to important properties and insurance policies that may play a significant role in rebuilding the debtors’ financial stability.
The following exemptions are available for insurance policies in Alabama:
- A maximum of $250 each month for annuity proceeds
- An average of $250 each month disability proceeds
- Life insurance proceeds only if children or a spouse are the beneficiaries
- Life insurance proceeds if the policy forbids using the policy for creditors
- Benefits from membership in a fraternity
These benefits can help debtors keep some of their financial protection for the future, and a knowledgeable attorney can further defend your rights during this difficult time.
Contact Us
If you have been struggling to manage your debt, bankruptcy may provide a useful solution. To learn more, contact the qualified Birmingham bankruptcy lawyers of Greenway Law, LLC, today by calling 205-324-4000.