“Federal judge approves Life Partners bankruptcy plan”
David M. Bennett, a Dallas attorney who has assisted Moran, said it will take years to carry out the plan that now is in place. Some policyholders soon will begin receiving checks, if clients whose life insurance policies they purchased through Life Partners have died since bankruptcy proceedings began more than a year ago.
Others will have to wait until the deaths of those who sold policies, and many investors “had some or all of their life savings at risk,” Bennett said.
“Our goal is to write checks to the affected investors as quickly as we can after the effective date of the plan, which we believe will be around Nov. 30,” Bennett said. “As we’ve said, considering investors are having to pay premiums on policies for longer than they were led to believe, which is what this issue is all about, investors in all classes will be getting 90 percent of what they have put in, on average, though the actual number could be higher or lower.”
He said the reorganization blueprint provided relief in some areas but does not remove investors’ responsibility to pay premiums.