What ill happen if a bank was awarded a judgment against me 3 years ago for a credit card debt nd my only source of income is Social Security Disabiltiy?

sI have no assetw with which to pay the debt. My wife is the beneficiary of my life insurance policy. When I pass, can the bank attach my life insurance proceeds or will my wife receive the full amount?

Asked on September 10, 2012 under Bankruptcy Law, Georgia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Social Security Disability is exempt from the claims of judgement creditors. Make sure that the bank wher the proceeds are depositied is aware of this and ask them if there are any forms you need to fill out should the creditor attempt to levy the account.  Next, is the debt in your name only or your wife's as well?  Your estate will be responsible for your debt.  Life insurance passes directly to the named beneficiary and outside the estate.  Perhaps a debt counselor can help.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.