I owe a lot due to a chronic illness. I am worry also how I am going to do to purchase medicines if we go bankrupt.
If a life insurance company goes bankrupt, what happens to whole life insurance benefits?
My mom purchased whole life insurance through AXA Equitable which is some paid for. What happens if the life insurance company goes bankrupt or his assets are under water like so many other financial institutions these days? may the benefits still be payable?
I also think it’s strange that he had to pay 0 more to this insurance company as an "adjustment"(?) recently even though the policy was fully paid for a long time ago. Is this regular?
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vbgore
Sit back and relax my friend. The fact of the matter is that insurance companies do not go bankrupt in the normal sense. They simply get acquired by other insurers. Sounds like your dad may have had a hybrid policy that has an investment component to it. The investment is not doing well and isn’t covering the cost of maintaining the policy costs. Hard for me to advise further without seeing the policy etc. But in any case don’t be concerned about the solvency of the insurance carrier.
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Michael R
If the company went into liquidation (Ch-7), that means that all of its assets will be sold to pay its debts. The money will got to a receiver, who will then pay the claims against the company. There is a time limit to file a claim, and you should contact your state insurance department immediately for instructions on how to do this. Beware, you will get only pennys on the dollar, as the company would not be in liquidation if it had anywhere near enough assets to cover. Also, most states have liquidation bureau that is funding by all insurance companies in the state so that there is some money for people entitled to collect. Those funds are generally limited.
If the company filed CH 11, that means that you will probably be okay and the company will operate, for your purposes, normally. Under this circumstance, it will re-negotiate with its creditors and probably come out of bankruptcy relatively unscathed. This is what most airlines have done to continue operating. They are burdened by huge obligations from past contracts, they minimize those obligations and then are able to operate in a profitable manner.
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Barry auh2o
You wouldn’t even know it. You would get a letter,
" Dear policyholder,
Your policy with AXA will now be serviced by XAX Life. If you have any questions, call 1-800.— —-. Please put this notice with your policy." -
car253
There are some great answers here. But Chris had the best one.
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Donnie T
Life insurance companies are highly regulated and have to have enough money in reserves to pay out claims and there are reinsurance companies that insure that the company that they insure does have a problem paying claims on existing policies in case of an unexpected senario, like a bad flu epidemic with a high percentage of their policy holders. So, yes it will still pay the benifits upon your father’s death.
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Chris C
If an insurance company goes bankrupt, typically the company that buys that bankrupt one has to honor the policies that were inforce.
Example: Sun Life in Canada has bought out several companies including Prudential, Clarica and Met Life. Sun Life still maintains those policies, they just have a different logo on the letterhead now.
FYI, AXA has more than $660 Billion in assets under management. I doubt that they will be going bankrupt. Liquidity issues maybe, but not bankrupt. There are a lot of financial companies that peopel think are going bankrupt becuase of vague headlines in the news. IE: AIG…they are no where near being bankrupt, they just have liquidity problems…think of it like you get laid off work for 2 months and you don’t have any easily available cash…you use your credit card to get buy…now imagine this bailout as being your credit card, only the AIG situation has A LOT more zero’s at the end. They just need a little cash until they can free up some of thier own.
Not sure about that adjustment. Depends on what type of policy it is that you have. If it’s a U/L policy or something where perhaps dividends were paying the premiums then an adjustment could be very normal. Best bet is to speak with your agent and inquire obout what the adjustment is for and why it is what it is.
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mbrcatz
If the carrier goes bankrupt, the policy gets transferred to another insurance company licensed to do business in your state. It happens ALL THE TIME, companies going out of business and policies being transferred.
Yep, that "adjustment" happens, and if the policy is actually not whole life, but a different kind of policy, it’s going to start costing every year as the investment returns won’t be enough to pay the premium every year. I’d suggest that the policy is not "paid up".
What may happen to car prices when/if an auto company goes bankrupt?
The auto industry, at least the American side of it, is struggling right now. And it looks like 1 or 2 of them may go under. I was wondering just how much of a cut we’d see in the prices if that company would fail. Example: if Ford goes bankrupt, how much do you think a new Mustang would price?
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brian s
some one has to buy them out and they still will have to get inventory off the lot of dealerships, just meaning they wont be turning out much mustangs if they did go bankrupt, they still would have a few thats just how business works but you probaly wouldn’t see much of a decrease just because it’s the dealers selling the cars at the prices they want
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phenobulous
nothing.
the same price. the car is already made and expenses relating to that are already incurred. a "fire sale" would only reduce profits.but why would you want to buy a car from a company that is going under?
The company I worked for went bankrupt. How can I still use them as a reference now that they are gone?
The welding company I worked for for 7 years went bankrupt 2 years ago. I started my own welding biz but it has not done well in the market here in florida. I need to find a real job but without the reference from 7 years of employment what can I do?
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Logic316
Try to find the managers or owner you used to work for and ask to use them as personal references. If not, put the defunct company down as a reference anyway. If your potential employers try to check them out and find they’re no longer around, they may well understand that the company simply went bankrupt. That sort of thing happens all the time, after all.
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Old Goat
It is the best time as they are not there anymore.
But, the worst thing to tell a new boss is that every place that you have worked at before is out of business.
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Mel
Be sure to list the position on your resume.
Do you have contact or contact details for any management or seniors that you worked with at the company? Use them for referees. If not, you can still list the experience on your resume.
Be sure to also mention your own business venture, so it show initiative and doesnt make it look like you were a bum for 2yrs.
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I dream of Nirvana
your bosses exist dont they..just give their reference
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pinkie
Search out your old bosses and get written references from them…
How do i get a house out of bankrupt status in order to clothes a real estate deal?
The house was a short sale and now it is in bankrupt status, the closing was supposed to be today but we can’t close, I need to find out how to get this out of bankrupt status so we can clothes this deal and get paid.
Btw im in florida
i am the real estate agent trying to clothes the deal
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FFStrategies
You have to go thru the bankruptcy court. I am unclear if the bankruptcy is yours or if your are purchasing the BK property. Either way–the court has it now and you have to get permission. Good Luck!
How are we going to face the next generation if we bankrupt the nation with spending and entitlement programs?
How are we capable of looking into the eyes of our children and grandchildren if we bankrupt the nation with high Government spending and entitlement programs such as Social Security and Medicare.
How are we willing and able to rest straight at night and say some is well, when our children might not be willing and able to pay our spiraling debt?
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Igor T. Unspeakable
How about the look in their eyes when they have to pull the plug on you, because they simply can not your health insurance any more. And with no social security, how will you face your children at the dinner table, being a burden on them.
You are right about the need for fiscal responsibility. You are right in the desperate need for reform. Is death camps for the old and the poor, your answer? Would you be able to look your children in the eye after that.
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bamboo
..you’re probably focusing on a part of the spectrum of the bigger picture which the current leaders are trying to ‘balance and resolve’.. our ancestors were not wrong either..for making decisions leading to what you have today.. but they were ‘right’ at that point in time..but ‘gross oversights’.. (how did this so-called debt started anyway?..)..in today’s context..and this will go on and on and on..definitely there were many who were having the same ‘passion’ as you were having but it was the right decision then…
..it is because it started,.. that it have to ‘move on’.. otherwise,..there will be chaos.. -
Retro95
Stand against it now and you’ll be able to answer them in the future with a clear conscience. We can see it happening; our debt is unsustainable, our social programs are bankrupt and some want the government to provide MORE social services, which will sink the ship that much more quickly.
The Tea Parties represent Americans who understand how serious the government’s overspending has become. There is opposition, but unless the entire country decides to own up to our debt and make some sacrifices to get things under control, the debt will continue to grow to the point where we break.
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Pink Pistol
MOve to canada.
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robert c
Especially the biggest one of all that is allowing two per cent to inherit most of the nation`s wealth.
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murky303
The same way we always have – piss the money raised by FICA, Medicare, health care payroll taxes away so the money won’t be there when people need it for retirement and health care,
In other words, pick our pockets when we’re healthy and rob us when we’re old and sick. Both parties have done it, Obama’s just more obvious.
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Dr. Mallikarjun
ask bush and his cronies. this is not a theoretical question for them.
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Chupate esa!
We will tell them we wanted low taxes…
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Jimmbbo
I voted AGAINST 0bama…let his minions figure out how to explain the debt each child born will have… currently $348,000 PER PERSON in the US…
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~The Wind Blows to the Future~
Rich people don’t pay their damn taxes, and unions suck…those have, and always will be our dilemma
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huh
don’t worry, by then it will be in the history books how bush destroyed our country
jimbo…you have added a zero …the real number is 30,400 so you are off about 310,000 per person…sounds like GOP math
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Sadcat
We spend a lot more on the military than we spend on any entitlement programs, but for some reason you conservatives think that kind of spending is just terrific.
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Patriots United for Liberty
The only thing we can do is teach our children how to care for themselves, because the government will no longer be able to hold their hands.
How are we going to face the next generation if we bankrupt the nation with spending and entitlement programs?
How are we capable of looking into the eyes of our children and grandchildren if we bankrupt the nation with high Government spending and entitlement programs such as Social Security and Medicare.
How are we willing and able to rest straight at night and say some is well, when our children might not be willing and able to pay our spiraling debt?
-
Igor T. Unspeakable
How about the look in their eyes when they have to pull the plug on you, because they simply can not your health insurance any more. And with no social security, how will you face your children at the dinner table, being a burden on them.
You are right about the need for fiscal responsibility. You are right in the desperate need for reform. Is death camps for the old and the poor, your answer? Would you be able to look your children in the eye after that.
-
bamboo
..you’re probably focusing on a part of the spectrum of the bigger picture which the current leaders are trying to ‘balance and resolve’.. our ancestors were not wrong either..for making decisions leading to what you have today.. but they were ‘right’ at that point in time..but ‘gross oversights’.. (how did this so-called debt started anyway?..)..in today’s context..and this will go on and on and on..definitely there were many who were having the same ‘passion’ as you were having but it was the right decision then…
..it is because it started,.. that it have to ‘move on’.. otherwise,..there will be chaos.. -
Retro95
Stand against it now and you’ll be able to answer them in the future with a clear conscience. We can see it happening; our debt is unsustainable, our social programs are bankrupt and some want the government to provide MORE social services, which will sink the ship that much more quickly.
The Tea Parties represent Americans who understand how serious the government’s overspending has become. There is opposition, but unless the entire country decides to own up to our debt and make some sacrifices to get things under control, the debt will continue to grow to the point where we break.
-
Pink Pistol
MOve to canada.
-
robert c
Especially the biggest one of all that is allowing two per cent to inherit most of the nation`s wealth.
-
murky303
The same way we always have – piss the money raised by FICA, Medicare, health care payroll taxes away so the money won’t be there when people need it for retirement and health care,
In other words, pick our pockets when we’re healthy and rob us when we’re old and sick. Both parties have done it, Obama’s just more obvious.
-
Dr. Mallikarjun
ask bush and his cronies. this is not a theoretical question for them.
-
Chupate esa!
We will tell them we wanted low taxes…
-
Jimmbbo
I voted AGAINST 0bama…let his minions figure out how to explain the debt each child born will have… currently $348,000 PER PERSON in the US…
-
~The Wind Blows to the Future~
Rich people don’t pay their damn taxes, and unions suck…those have, and always will be our dilemma
-
huh
don’t worry, by then it will be in the history books how bush destroyed our country
jimbo…you have added a zero …the real number is 30,400 so you are off about 310,000 per person…sounds like GOP math
-
Sadcat
We spend a lot more on the military than we spend on any entitlement programs, but for some reason you conservatives think that kind of spending is just terrific.
-
Patriots United for Liberty
The only thing we can do is teach our children how to care for themselves, because the government will no longer be able to hold their hands.
may it hurt your credit score if you clothes a credit card for a company that has gone bankrupt?
Ex: Friedmans has gone bankrupt (some locations closing why would I need it) and I just PIF. I decided to clothes it, but then wondered it doing so would hurt my credit score, since my debt to credit ratio has just gone down.
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DaT SiNg3r GuRL
no i dont think so. it aint your fault that they are bankrupt and you don’t owe them no money
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Mike S
credit bureaus’ score is based on "Credit Usage" if they’re going banckrupt and you won’t use the card there’s no point keeping it. Closing a card never affects you negatively unless you get in the habit of getting cards, then closing them after the 0% or whatever "trial" period they offered.
Close it.
Want to buy a house from a mortgage company that went bankrupt?
I found a property while traveling and completely fell in love with it. There was a "bank owned" sign and a phone number. The phone number is no longer in service. I made my research over the internet and found out that it was owned by the Taylor, Bean & Whitaker mortgage company which went bankrupt last week and closed. I am unable to contact the company by some means.
I really want to get this house but I don’t know who to contact.
some suggestion?
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jlf
If what you say is true, the house is one of the defunct company’s assets and will be disposed of through the bankruptcy process. Could be a long wait.
How do I get my W2 from a company that went bankrupt and no longer exists?
I do not have some contact information for the former owner of the Company I used to work for. The company itself went bankrupt and no longer exists. I NEED a copy of my W2 so my husband and I can get our taxes in order and filed ASAP! Thanks!
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Bash Limpbutt's Oozing Cyst©
The owner of the defunct business is still personally responsible for sending out the W-2s and any other tax compliance issues. They are not due in the mail until Feb 1st and are not considered late until Feb 15th.
If you don’t receive your W-2 by Feb 15th, call the IRS and file a missing W-2 complaint. They will assist you in securing the W-2 or will authorize you to use an alternate method of reporting your income & withholdings.
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Brad B 6:37 pm on September 2, 2010 Permalink
Never. Bankrupcy is a hard thing to go through. Not only financially but emotionally and physically as well and is very hard to recover from.
Most times the people who file for bankrupcy could actually get themselves out of the jam…it takes looking at it from the outside in.
Its like asking when is the right time to divorce…there is no absolute answer, but if it can be avoided it should.
Best of luck, my prayers are with you.