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?
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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 12 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.
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