Can creditors freeze my bank account without going to court to get the money I received from my deceased husbands life insurance check

A creditor needs a Judgment in order to take money from your account.

The proceeds of the insurance can be used to pay your debts.

Is the credit debt yours?

Yes it is my debts. It is a long story how I became in debt. But my husband recently died and I am worried about the life insurance money being taken by creditors

Hello pat:

They're probably going to take it. You might try bankruptcy.

excon

Another words can they get a judgment against you and your bank account without a summons and court hearing?

As noted, first they must get a judgement against you. Have you been served with any summons? Are you even behind on your payments?

If you want to protect it, don't put it in a bank account.

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Originally Posted by ScottGem

If you want to protect it, don't put it in a bank account.

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Hello Scott:

That's going to be hard to do if they cut her a check. Do you have an idea?

excon

Please don't start a new thread on the same issue. I've merged your threads for you.

Before they can get a summons they are supposed to serve you with notice of a suit and there has to be a hearing. However, sometimes, unscrupulous collectors will fudge service in order to get a default judgement.

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Originally Posted by excon

Hello Scott:

That's gonna be hard to do if they cut her a check. Do you have an idea?

excon

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Deposit it and withdraw as soon as possible before they get wind of it.

If she files in Bankruptcy she has to list all transfers - and this is a transfer.

I'd say cash the check, withdraw the money and don't file for Bankruptcy. That can always be done at a later date.

On the other hand - times are tough for everyone. Aside from circumstances I'm not sure advising someone how to beat the system is a good idea.

Just sayin'.

Quote:

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Originally Posted by ScottGem

Deposit it and withdraw as soon as possible before they get wind of it.

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Hello again, Scott:

I assumed that the check would be written AFTER a judgment was entered. If so, she probably wouldn't have ANY accounts that they DON'T already have wind of.

Besides, I'm not sure, that if she's aware that a judgment against her is pending, and she tries to hide this money, it COULD be considered fraud. Could it not?

excon

Is this going to be one large lump sum, or is it monthly check.

Either way of course they can if they get a judgement, A judgement requires a court hearing.

I'm getting the feeling that no summons has been issued yet. We don't even know if she is delinquent. I think we need more info here.

Thank you all for your varying advice. It is not so much trying to beat the system as financial survival. I am a 69 year old widow with limited income.

No problem with that BUT you need to answer questions:

Is it your debt? (I believe you said it is but there are special circumstances.)

Have you been served with papers concerning the debt?

What State? Is the debt yours, your husband's, joint? Was any part of the debt HIS medical expenses?

How much money are "we" talking about - both the debt and the insurance.