Can a beneficiary’s creditor take life insurance proceeds to satisfy a judgement?
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Can a beneficiary’s creditor take life insurance proceeds to satisfy a judgement?
Trying to help my mother. She’s 74 and on social security/retirement income. Named benficiary on Stepfathers life ins. She has a judgement against her from credit card company several years ago. Started out at about 3K but has now grown to over 8K (assuming interest is accumulating). When her stepfather passes, can they take money from the life insurance proceeds?
Asked on July 22, 2012 under Bankruptcy Law, Oklahoma
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Yes, they can attach the proceeds if they are deposited in to an account that they can levy on. She needs to speak with some one asap about trying to settle or extinguish the debt NOW and before he passes. This way it is not an issue at all. Good luck.
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