The money does not necessarly automatically go to the creditors (the people to whom you owe money are your "creditors"; the person who has money is a "debtor"), unless  there already was a court order in place that the money be sent instead to a creditor. However, the creditors will certainly have a claim on that money, and if they become aware of or suspect it, can take collections actions, like trying to have it garnished or executed upon, to get it. The money will go to the beneficiary unless the creditors specifically act to get it, or a court orders it.