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Can a creditor seize a life insurance policy?

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Big Mac

Guest
This comes from Georgia. Can a creditor seize a life insurance policy for its cash value to satisfy a judgement? I tried to get an answer to this a few days ago and nobody responded. Thanks in advance.
 


I AM ALWAYS LIABLE

Senior Member
Big Mac said:
This comes from Georgia. Can a creditor seize a life insurance policy for its cash value to satisfy a judgement? I tried to get an answer to this a few days ago and nobody responded. Thanks in advance.
My response:

Yes. A contingent interest, such as life insurance and it's current cash value, may have a lien placed against it up to the value of such insurance cash value. Then, the judgment creditor files a motion to have the court make its orders to have the insurance company pay the judgment.

IAAL
 
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buddy2bear

Guest
I think they can do that only if you are the owner and insured of the policy. If you are the insured and someone else owns the policy, i.e., parents, then I don't think they can touch it. I offer this opinion based on experience. 23 yr old son filed for bankruptcy, but we, as parents are the owners of his life insurance policies (took them out at "zero" age because it keeps premiums low for lifetime). They were unable to touch them because of this.
 

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