If a person dies owing money, what happens?

Question

If a person with no remaining family members dies without a will and having only five hundred dollars in the bank but owing thousands to credit card companies, what can the card company do about it? Are they insured against such eventualities.

This person has already paid for his cremation.

Most of those who answered obviously paid little attention to the facts given in the added details. It was pointed out that there were no living family members and no will. Yet responders kept saying the wife or children would be responsible for the thousands owed to the card companies. Obviously, if there is no will, there is no executor.

Answer 1

Yep, the credit card companies are assedout. Fortunately since they were charging this poor soul 28% interest in the years leading up to his death, they have recouped their losses about 200 fold. There are no losers in the lending game, they all win. That is the business. They would not lend if they could not afford to lose.

Answer 2

Well if this person has no remaining family members or next of kin, I would assume that the credit card companies eat those thousands owed to them.......naturally they know some people will not pay off their credit cards ...etc. before they die...and I would say that if that person did have family members like children or sibilings...etc.. then maybe the credit card companies would seek them to see to it that the outstanding debt is paid, but I am sure that $500.00 is gone and used to pay whatever it could ...maybe even that credit card debt, although it didn't pay it off completely. What can they do about it?? At least, in their mind, they got something rather than nothing.

Answer 3

If the only person whose name is on the card dies, the debt dies with the cardholder. The only time the credit card company can go after anyone is if it's a husband and wife account, or a parent and child. Then the remaining live person is responsible for the debt. That's why, when they offer to sell you insurance to cover the debt in case of your death, just laugh at them. They can't go after your estate or your family or even your little puppy dog. The debt is canceled when your clock stops.

Answer 4

Well Even if there is no will, the fact that they had assetts may come into play especially since there are no remaining relatives to claim the funds. Without a estate or exectutor of a will I am fairly sure the credit card company has the legal right to put claim against any funds

Answer 5

Credit card companies already made money with the outrageous 24% interrest before the death. Anything else is just a loss. You get nothing and the government always makes out in the end.

Answer 6

Whatever is left will go to his debtors. The balance of the debt will have to be written off. The credit card company will find other ways to make up for the loss, like raising fees.

Answer 7

the credit card companies are insured in such cases and they recive all the remaining cash that this dead person had. the insurance company pays the rest since the problabilty of such thing to happen isn't high....why? do you owe cash and wanna fake your death? that's a good idea.....:-)

Answer 8

If there is no will, no outside family members and no money in the estate to liquidate, no property to liquidate, then there isn't much they can do at all. They have to write off the debts as uncollectable and get on with business elsewhere.

Answer 9

I think the state would get their estate and sell it and pay off whoever they owed. If they can't do this, then I guess it's tough luck for the credit card companies and anyone else they owed.

Answer 10

they write it off as a business loss...

but don't feel bad for the credit card companies... they make millions off all the "alive" ones who borrow money from them and pay it back slowly (insterest only for the most part).


Just say no to credit cards.