If you die and you owed a lot in debt, does your debt get passed on to next of kin.i.e credit cards, loans , e.t.c
and if you didn't take out insurance on these.
2006-10-18 03:26:15 · 26 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
yes as far as i am aware your partner then has to pay the debt that you were in, whay??? are going to die??? i hope not you seem like a lovely person.
2006-10-18 06:07:03 · answer #1 · answered by welshwife 4 · 0⤊ 0⤋
It doesn't get passed on to a relative unless it's a spouse, because te debt becomes a lein against the estate. The spouse does have the obligation to pay those bills. Debtors can put a claim against the estate through the court system. Thats why so many people place estates in probate even though they may not anticipate a claim. Once it clears probate court, no one can make a claim there after. It's forever hold their peace at that point.
Hopefully that helps.
2006-10-18 10:36:02 · answer #2 · answered by westfield47130 6 · 0⤊ 0⤋
I believe that the next of kin is responsible only if his/her name is on the credit card, or if he/she has co-signed the loan. However, the creditors can file a claim against the estate, and try force the sale of assets to collect payments for the debts.
2006-10-18 10:38:51 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Your next of kin becomes liable for any debt you leave behind. If you have any assets the creditor will expect to be paid from the estate before any dividing up among relatives. Its a horrible thing to leave for your loved ones to sort out as well because most creditors are very unsympathetic in the circumstances .
2006-10-18 10:38:04 · answer #4 · answered by starlet108 7 · 0⤊ 0⤋
Any uninsured debt normally gets passed on to your estate irrespective of whether its secured or not. If the debt was larger than the estate itself - I'm not sure what happens. I know that uninsured credit card debt gets passed on to next of kin as thats happened in my family for a recently deceased member.
2006-10-18 15:46:02 · answer #5 · answered by nemesis 5 · 0⤊ 0⤋
If it's joint debt, yes. However, creditors can put liens against your assets, so it could be paid out of any inheritance that is existing. But it doesn't get passed on to the next of kin, unless you were financially responsible for it, or you are the one gaining from the inheritance.
2006-10-18 10:34:45 · answer #6 · answered by Momma Jo 6 · 0⤊ 0⤋
I don't know about the legal implications of the situation you describe, it probably depends on where you are located and it's best if you check with a local lawyer.
I do know one thing however: the question would be "hypothetical" as in "hypothesis", not "hyperthetical" with hyper- being the prefix that signifies excess.
Good luck with the lawyers!
2006-10-18 10:37:29 · answer #7 · answered by OlgaBJ 2 · 0⤊ 0⤋
Your estate would be liable for any debts left unpaid at death, but your family/heirs are not personally liable. Creditors can't go after their assets, except, of course, for a spouse, in which case both debts and assets are considered to be jointly held.
2006-10-18 10:34:22 · answer #8 · answered by x 7 · 2⤊ 0⤋
Heeelllll NO!
That's between the debtors and the deceased...and some'body''s
just left holding the bag! And it won't be the dead or the family...screw 'em! I tried to get out of a medical bill by pretending I was dead, calling the office (doctor's) playing my mother...didn't work; just paid it anyway for credit reasons.
By the way, it's "hypothetical" : p
2006-10-18 10:46:46 · answer #9 · answered by incognitas8 4 · 0⤊ 0⤋
In short, yes but maybe not...
Your creditors can theoretically recoup their money from your estate.
However - I work in the banking sector and provide loans, credit cards etc. We were told in our training that the likelihood of us trying to recoup those funds would be quite small as it would generate bad press.
So hypothetically, yes they can - but they could write it off.... depends on who it is!!!
Hope that helps.
Andy
2006-10-18 17:40:06 · answer #10 · answered by Anonymous · 0⤊ 0⤋