by Guest » Tue Aug 21, 2012 05:44 am
Hi. My brother was recently killed in a motorcycle accident. No one knew that he had a life insurance policy, but we just found out that i am the beneficiary. i have approx $50,000 in credit card debt and a judgement against me for $80,000 for a rental property i foreclosed on when my husband lost his job. am i going to loose this money? What can i do? Do i need to use this money to pay back debt? will creditors know of the money? my intentions are to put some of the money away for my childrens college educations.
Posted: Fri Aug 24, 2012 12:34 am Post Subject:
am i going to loose this money? What can i do?
No one can force you to use the money in a particular way before it is paid to you. If you owe money to others, once the life insurance proceeds are in your hands (so to speak), the creditor(s) who have legal judgments against you are entitled to enforce their judgments. They cannot touch the money before you do.
my intentions are to put some of the money away for my childrens college educations.
You might want to leave the money with the insurance company for the time being and collect the interest payments only, if the insurance company allows that.
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