What happens to a credit card debt if I die?

Question

I have some outstanding debts on credit cards and am being hounded to pay in spite of me calling the companies to say it is a temp cash flow problem they are bombarding me with phone calls (especially over the weekends) which means I can't relax or sleep and I don't feel well. My blood presure is through the roof and I am starting to feel like I need a real long sleep. If I am not around any more what happens to the debts? Can they demand payment from my estate or does the debt die with me?

Answer 1

your estate pays it. But if you have nothing to take. Than it is paid by no one and is wrote off.

Answer 2

Here's a tip: The next time they call, tell them you are aware of the problem, you have already spoken to someone there, and you want the calls to stop IMMEDIATELY. Be sure to tell them if they continue to call you every day, you will call your lawyer and sue them for violation of the Fair Debt Collection Act. Once you put them on notice that you are aware of the problem and you are handling it, THEY CANNOT CONTINUE TO CALL YOU. That's harassment and it's illegal.

To answer your question: They can demand payment from your estate. This is how it works: When someone dies, the estate is handled by a probate judge. Every state is different, but the executor of the estate is required to advertise in a local newspaper for a certain amount of time that claims against the estate are being accepted. Your creditors then have a certain amount of time (usually six months) to file a claim against the estate. Any claims that are filed timely must be paid out of the estate -- if there is enough money in the estate -- before any other payments can be made. If there isn't enough money in the estate to pay all the claims, the probate judge decides who gets paid and how much. If no claims are filed timely, or if there is money left over after all the claims are settled, the rest of the estate is distributed in accordance with your last will and testament.

Does that help?

Answer 3

First of all, get a grip!
It is only money. Don't go for a "real long sleep" over it!
seriously, watch the movie "It's a Wonderful Life" trust me, you will feel better.

If the credit card companies are calling you non stop you just tell them to only contact you in writing and not call you anymore.
Send each creditor that is hounding you, a cease and dessist letter. I'm sure you can google for a sample. Don't admit anything wrong in the letter, just basically the letter tells them to not call you on the phone anymore.

Stop thinking about your estate and all that nonsense.
Just start thinking of how you can pay off the debt or maybe just file for bankruptcy.
Maybe your card companies will work with you for lower minimum payments for a while...

so hang in there. this isn't worth dying for.

Answer 4

Your estate, if you have one, will be responsible for any outstanding debts up to the limit of any assets in your estate. If your estate has nothing of value, then the debt effectively dies with you.

Contact a debt counsellor! It's possible to both dig yourself out of this AND stop the phone calls and harrassment.

I've been down that road before and honestly know exactly how you feel. In my case, both debt counselling and personal counselling (for that urge for a long sleep; VERY dangerous thinking!) helped immesurably.

In the meantime, get Caller ID if you don't already have it. Turn the phone ringer down low and don't answer the phone unless it's friends or family. This will go a LONG way to reducing your blood pressure.

Consult with an attorney as well. Bankruptcy is an option and although it will mangle your credit for a while, the release of pressure by stopping the dunning calls makes it well worth considering. Just filing for bankruptcy will stop them cold and if you can get things together financially you can just drop the bankruptcy action and move on with your life.

But whatever you do, PLEASE talk to someone! Don't let that desire for a long rest get the better of you; it just isn't the way to go.

Good luck and God Bless!

Answer 5

Normally this will follow you to the grave. Ha!!! Not really, I think in most cases it is just written off. Been a long time I had a Credit Card, but, I think they have that part covered. I hope to die debt free, but, the way things look it may be a dream. Most Credit Cards are unsecured credit. This means they only have you to go to for the debt. Now say a House Mortgage, the bank has the collateral of the house and could be able to take it back. Most home owners insurance can have a thing cover this.

Answer 6

Guess what.

S c r e w - em. O.K.

You don't have to die. It's only temporary. You simply TURN YOUR PHONE OFF for some peace of mind. That's all you have to do. Dont answer the phone. Anyone important will leave a message.

When you've got the money to pay it, it will still be there.

Pay it on your terms, not on theirs. Your credit will be dinged but so what. You'll repair that when you're financially ready to be more responsible about your credit.

You can answer the phone and tell them that their excessive calls constitute harassment which is against the law.

I would change my telephone number long before I ever thought of killing myself over some dumb stupid debt.

Your life is worth more than the debt, believe me the financial crunch you're in is only temporary.

Just live your life, and pay what you can WHEN you can.

Answer 7

They will demand payment from your estate. It's not worth topping yourself over these debts. Think of how that will affect those around you. There's still a lot you can do - don't ignore these people - contact your local citizens advice bureau, consumer credit counselling service or the national debtline - their services are free and they can advice you on the best way to get these companies off your back - there's still hope.

Answer 8

You just need to find a good debt settlement company.
First off it is important to understand debt settlement and how the process works. Essentially, debt settlement is a negotiation process where by one of the many reliable debt settlement companies you are considering will negotiate with your creditors on your behalf.

it is the job of a debt settlement company to convince your creditors of the value of lowering the total amount of money that you owe. A little money is better than no money at all.
You'll be ok, just go about it the right way.

Answer 9

The other posters are right. They will take it from your estate. Talk to a credit counseling service first. They are usually not-for-profit and charge little to nothing. Then talk to an bankruptsy attorney. Don't take your own life over this. This is a temporary problem that you can get out of. Confront it head on!

Answer 10

In a few words they will take money from your estate.
But first the secured creditors will take the money and then the unsecured loans like visa cards
The best thing to do is dont answer your phone and try and relax.

Answer 11

first of all stop worrying....
go to the C.A.B.
or go on this site I.V.S,
your creditors can get into trouble for harrasment,because thats what there doing,if you go to c.a.b or i.v.s,you must be completely honest about your financial situation,your earnings,outgoings,how much you owe to all your creditors,
the c.a.b will write to all your creditors offering them an amount,they will eather accept what is being offered to them or they wont,they will also do you a financial statement,one for them & one you,as long as you keep up regular payment & dont miss any you should be ok.but trust me on this,iv just done the same thing,my payment are much easier to manage now,also make a note of all calls from the creditors,keep all letters etc,take them with..
do me a favour please dont do anything silly will you,talk to someone,theres help out there.
good luck hun x