Everett v. Judson,
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228 U.S. 474 (1913)
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U.S. Supreme Court
Everett v. Judson, 228 U.S. 474 (1913)
Everett v. Judson
Argued March 13, 1913
Decided April 28, 1913
228 U.S. 474
Burlingham v. Crouse, ante, p. 229 U. S. 459, followed to effect that, under § 70a of the Bankruptcy Act, the trustee only takes surrender value of insurance policies on the bankrupt's life, or, in case loans have been made by the company issuing the policies, only the excess of surrender value over the amount of the loan.
Under § 70a of the Bankruptcy Act, the bankrupt is entitled to the policy by paying the amount of the cash surrender value or excess thereof over loans as of the date of the filing of the petition, and in case of the maturity of the policy before the adjudication, he or his legal representative is entitled to the proceeds of the policy over and above such amount.
Congress, by the proviso in § 70a, fixed the date of filing the petition as the line of cleavage as between the trustee and the bankrupt in regard to life insurance policies, and this is not affected by subsequent events such as the maturity of the policy by the suicide of the bankrupt, even though prior to adjudication.
192 F. 834 affirmed.
The facts, which involve the construction of § 70a of the Bankruptcy Act and the ownership of policies of
insurance on the life of a bankrupt, are stated in the opinion.