Many assets, including the majority of life insurance policies are exemptible assets that can be fully protected in bankruptcy, but they must be disclosed to your bankruptcy attorney in order to be protected. If your policy is a whole life insurance policy with cash value, it is helpful to know that value when you speak with a bankruptcy attorney in order to ensure it will be fully protected through your bankruptcy. If you are considering bankruptcy, you have already made the decision to improve your and your family’s financial situation. If you don’t already have life insurance, investing in it can be another wise financial decision you can make after your bankruptcy is discharged.