Find the best financial services for you at: SMARTFINANCESOLUTIONS.NET - Bankruptcy, Debt and life insurance? - My parents both had a mortgage and other debts (credit cards, loans, etc) that they were paying for. When my mother died 2 years ago, my dad filed for bankruptcy because he couldn't afford making payments alone. However, he bought a 10 year term non-smoker life insurance about a year ago to protect me if he died.