What Happens To The Cash Surrender Value Of My Life Insurance Policy Or My Annuity?
On behalf of Bankruptcy Law Firm of Clare Casas on Saturday, November 27, 2010.
Good news! In a Chapter 7 bankruptcy, Florida law protects the cash surrender value of life insurance policies and the proceeds of annuity contracts. Florida Statute 222.14 exempts (protects) from attachment, garnishment or any other legal process.
The important thing in any bankruptcy filing is to be 100% forthright about your assets and disclose them to the court in your petition. For many Florida residents that are considering a Chapter 7 or Chapter 13 bankruptcy filing, the only significant assets that they have are retirement accounts, annuity contracts or the cash value of their life insurance policies. All of these assets are fully protected under Florida bankruptcy exemption law.