Will a judgement lien against my husband have to be paid out of insurance proceeds regarding an unrelatedcar accident if the car was in both of our names?

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Will a judgement lien against my husband have to be paid out of insurance proceeds regarding an unrelatedcar accident if the car was in both of our names?

I was recently involved in an auto accident. The other driver was charged and I was not. My vehicle is most likely a total loss and worth about $20,000. A few months ago, a final judgment of about $2,200 was entered against my husband by a bank for a bank credit card in my husband’s name only. My vehicle is in my name and my husband’s name, with my name appearing first on all paperwork. Will this lien, which is in my husband’s name only, have to be paid out of the insurance proceeds for my vehicle, although the vehicle is in my name and my husband’s name?

Asked on August 16, 2011 Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If the $2,200.00 judgment against your husband for a credit card obligation has not been liened on any lawsuit concerning the automobile accident you were involved in and if you husband is not a plaintiff in this lawsuit, then the $2,200.00 credit card judgment against your husband would not have to be paid out of any settlement concerning this automobile claim or lawsuit.

However, if a lien is placed on this automobile claim or lawsuit, then the credit card judgment would have to be paid off through proceeds due your husband in the event of any settlement.

If your husband can afford to make monthly installments on the $2,200.00 judgment, I suggest he try and enter into a written agreement with the judment creditor to pay it down before it finds out about the automobile accident claim and possible lawsuit.


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