Or any age, really. Say if you're in debt with creditors and loan companies.....Where does your debt go? And how is your death paid for, that is with or without life insurance?
2006-07-25 11:57:24 · 7 answers · asked by Pep Streebeck 1 in Society & Culture ➔ Other - Society & Culture
That depends. If you have assets your creditors could claim them. If you have no assets, the creditors "write it off", which means they eat the debt, and get a tax break from doing so.
If a life insurance policy is payable to your estate, then those proceeds will go toward the debt. But if someone else is the beneficiary of your policy then the creditors can not touch it.
2006-07-25 12:07:36 · answer #1 · answered by lcmcpa 7 · 0⤊ 1⤋
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2016-11-25 23:49:22 · answer #2 · answered by ferencz 4 · 0⤊ 0⤋
If you had a will, liens would be placed against your assets at the time of death. They would have to be paid off as part of accepting the assets. If the money didn't cover the debt or the funeral costs then the debtors would be S out of luck, you would not receive a funeral, and the good ol american taxpayer would pay for you to be buried or cremated.
2006-07-25 12:03:51 · answer #3 · answered by rweasel6 2 · 0⤊ 0⤋
Most places will do their best to saddle your heirs with your debt. If they can't, then the write it off. Just don't apply for a new car loan after you're dead. You won't get it. If you don't have life insurance, or other arrangements, then it's up to your heirs to pay for your funeral and burial costs out of their pockets. If they can't, then the state may do so, but you will get the cheapest and worst of burials imaginable.
2006-07-25 12:08:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
debt consolidation
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-consolidation.htm
2006-07-25 22:13:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They are usually written off (charged off), unless you are wealthy and have an estate that they recover money from. Basically, your debt dies with you.
2006-07-25 12:00:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Your estate (meaning everything you own).
2006-07-25 12:00:53 · answer #7 · answered by treday25 5 · 0⤊ 0⤋