Legal Question in Wills and Trusts in Alabama

Beneficiaries help after deceased bankruptcy

My father in law recently passed away, leaving 2 small life insurance policies to my husband and brother in law (a minor). These were barely enough to cover funeral expenses and pay this months bills. He had recently filed bankruptcy, chapter 7,but I am not positive. He had borrowed against his house to pay this payment. I think there is about 2 more years left to pay on it. He was also on disability. He had a lot of unpaid medical bills (lung cancer) that we can't pay. We can barely pay our own. What portion of these bills will we wind up having to pay? Will we be able to file for a discharge? Can we keep the house if his ex wife's name is still listed on the deed but not on the life insurance policies? Will the creditors try to take the life insurance money from my brother in law (the minor)?? Please help clarify this confusing situation!! Thanks!!


Asked on 6/04/09, 1:46 am

1 Answer from Attorneys
William Nolan Nolan Elder Law LLC

Re: Beneficiaries help after deceased bankruptcy

First, no one else is responsible for another adult's bills, so you have no legal or moral obligation to pay them. Insurance should pass directly and should not be used to pay bills for him either. The rest of the situation ought to be discussed with the bankruptcy attorney since it might make sense to turn over the home to the lender rather than trying to salvage it. Tell me where in Alabama this is happening and I can refer you to a good lawyer there.

William G. Nolan www.NolanElderLaw.com

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Answered on 6/04/09, 11:25 am


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