{"id":350684,"date":"2014-02-21T14:11:19","date_gmt":"2014-02-21T21:11:19","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=350684"},"modified":"2022-01-19T19:48:31","modified_gmt":"2022-01-20T02:48:31","slug":"what-happens-to-your-debt-when-you-die","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/uncategorized\/what-happens-to-your-debt-when-you-die\/","title":{"rendered":"What Happens to Your Debt When You Die?"},"content":{"rendered":"

\"\"<\/a><\/p>\n

It\u2019s an understatement to say that having a loved one die is a terrible time for all.\u00a0 Once the shock wears off, the next steps are to get through the memorial, the reading of the will and the inventory of possessions.\u00a0\u00a0 An unheralded event that often follows:\u00a0 creditors come knocking on the door.<\/p>\n

In some cases, you may be prepared for this to happen.\u00a0 However, sometimes the deceased has credit cards or loans that are unknown to the immediate family or friends, with balances that can often be substantial.<\/p>\n

What are your legal obligations in this case?\u00a0 In general, creditors can only levy the estate of the deceased.\u00a0 What this means is that if there are any assets or money left behind, the creditors typically get paid first before any money is given to the heirs.\u00a0 Creditors will contact the executor (the person assigned to handle the assets of the deceased) and present the bill for the unpaid balances.\u00a0 After the creditors are paid, the remaining funds are distributed to heirs per the dictates of a legal will.\u00a0 If there is no will, state law dictates how assets are divided. \u00a0\u00a0If there is no estate, creditors won\u2019t receive any money.<\/p>\n

Even if you don\u2019t think you are legally obligated to pay the debts of your deceased relative, don\u2019t be surprised if creditors become quite insistent. I\u2019ve received the following question in one form or another many times<\/p>\n

Question:<\/strong><\/p>\n

My mother died 6 months ago and apparently had some outstanding credit card debt of which we were unaware. She didn\u2019t leave any money or property.\u00a0 Both my father and I have been receiving letters from collection agencies and even have received phone calls from them. \u00a0The letters keep getting nastier and nastier and one of them even threatened to sue my father.\u00a0 What do we do?\u00a0 We don\u2019t have any money and it makes no difference when I tell the collectors that my mother has died.\u00a0 They insist me or my father is responsible to pay the debtfs.\u00a0 If it helps you to know, she died (and lived) in Pennsylvania.<\/p>\n

Answer:<\/strong><\/p>\n

First of all, let me express my condolences to you and your father.<\/p>\n

In general, when someone dies, personal debt does not pass on to surviving family members.\u00a0 Usually, when such an instance as this occurs (there are no assets in the estate), your mother\u2019s creditors are out of luck. However, there are exceptions:<\/p>\n