Legal Question in Credit and Debt Law in California

Can insurance company take over judgement?

I was convicted of embezzlement in June 2000 and ordered to pay restitution of $250,000. I filed Chap. 7 in 2000, but debt was not discharged. My understanding is that the restitution order is also a civil judgement. I recently received a letter from the victims insurance company stating that they paid the victim $50,000 and they are now looking to collect that from me. My questions are: Does the insurance company already have a judgement against me by taking over from the victim? Is there any way to stop them from freezing my bank account? Are they likely to settle for minimal monthly payments (100-150)?


Asked on 9/14/04, 12:32 pm

2 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Can insurance company take over judgement?

1. No 2. No 3. No

Read more
Answered on 9/14/04, 12:33 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Can insurance company take over judgement?

They may not have a judgment against you, but can obtain one. You should try to work out a settlement now with them and the victim. Your payment amount will be based on what you can afford, and what your assets are, subtracting any available exemptions. You may be better off negotiating a discounted lump sum payment, if you can, and paying it off now. Speak with a debt negotiation attorney about your options--if you ignore this, they will likely start levying your accounts, seizing assets, and garnishing your wages.

Read more
Answered on 9/14/04, 12:48 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California