Legal Question in Credit and Debt Law in Florida

Inheritance and Defaulted student loans

My question pertains to my sister who is defaulted on student loans and she is a beneficiary of a life insurance policy. She wants to know if the life insurance proceeds which she is to make claim for will automatically go for the defaulted student loans. Do the life insurance companies have to report this to the govt and can they seize her inheritance money as a beneficiary of a life insurance policy?

Thanks


Asked on 1/08/07, 5:50 pm

1 Answer from Attorneys
David Slater David P. Slater, Esq.

Re: Inheritance and Defaulted student loans

Not unless they have a court judgment against her. A mere outstanding loan is insufficent.

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Answered on 1/08/07, 6:21 pm


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