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Irwin Law
Irwin Law, Attorney
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Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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I live in NC.I just received life insurance benefit checks.

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I live in NC.I just received life insurance benefit checks. Are these benefits exempt from collection by creditors? Should I not deposit them and speak with an attorney first?
Normally, life insurance proceeds are where a policyholder dies and the benefits are paid to a beneficiary. Those are definitely attachable by creditors. You say that these are life insurance "benefit checks" so it's possible that they might be exempt while the money is part of the disability or retirement fund. But when checks are issued and co-mingled with other funds in a common bank account, they might not be. Someone will have to review the entire program to determine whether it is protected funds or not. You idea of speaking with an attorney (collection type) first is a good one.
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Customer: replied 3 years ago.

What if I open a separate account, specifically for the benefits, and deposit the monies in it, so that they won't be co-mingled?.

I depends on whether that particular fund is exempt from creditors or not. If it isn't, then holding it separately won't help.
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