I know it's a sticky situation, but I was hoping someone out there might be able to offer up some answers. I am thinking that they shouldn't be liable since they're not able to legally enter into a contract, but I don't know what the exact law is as it pertains to banking.
2006-10-24 11:16:41 · 7 answers · asked by YZerizef 1 in Business & Finance ➔ Credit
Additionally, there is no estate and it has been sent to collections and is gathering interest charges. Any suggested steps to clear this up?
2006-10-24 11:25:47 · update #1
They are not civilly or criminally liable, but the deceased's estate can be required to pay the money and any fines incurred.
2006-10-24 11:18:50 · answer #1 · answered by finaldx 7 · 0⤊ 0⤋
The estate will be held liable...which means that before any assets are distributed, the bank will have a claim for the amount of the overdraft.
However, you should know that being on the overdrawn account may prevent the opening of another checking account later. The banks share this information and it is tracked by social security number.
2006-10-24 11:21:44 · answer #2 · answered by bride2be091507 2 · 0⤊ 0⤋
each state is different. my experience lies mainly with Indiana and Michigan. in Indiana, a joint account that is non-spousal requires a IH-19 Intent to Transfer if it's non-interest bearing, and a IH-14 Consent to Transfer if it is interest bearing. After the assessor releases the funds (after the inheritance tax is paid) then the account can either remain open or be closed.
What my bank does is if the account is spousal and overdrawn, we keep it open and the spouse gets to conduct business as usual, after they pay back what they owe. If the account is non-spousal, we ask the other owner what they want to do. If it's overdrawn, we can't close it until it is brought to a positive balance...either by reversing fees or taking it out of the estate. Technically, the primary owner of the account is responsible for the account standing. Also...you can't get a checking account by yourself unless you're 16, not 18. Contact your financial institution if you're really concerned about it.
2006-10-24 13:56:10 · answer #3 · answered by centerstage 3 · 0⤊ 0⤋
I knew a person whose mother put the utility bills in her name when she was five, the utility companies have held her liable and it destroyed her credit.
They should not be liable since they are not able to enter a legal contract however that doesn't stop the bank/business from trying to hold her liable
If you explain the situation to them and they still don't cancel the debt, then you would be able to seek legal ramification
2006-10-24 11:22:07 · answer #4 · answered by Naveed 2 · 0⤊ 0⤋
Each state is different. While the general rule is that minors can't be held responsible for a contract, that's not always the case for necessities (food, clothing, shelter). In addition, if you actually received anything tangible, sometimes a state's law will require that you give up that item back to creditor, even if it doesn't hold you responsible for debt. Please contact legal aid or an attorney in your jurisdiction for an accurate analysis.
2006-10-25 08:07:15 · answer #5 · answered by MJ 4 · 0⤊ 0⤋
i believe that if your name is on it ...you are liable.
2006-10-24 11:24:18 · answer #6 · answered by Cheryl E 4 · 0⤊ 0⤋
no. it was your parents flat. so hopefully their insurance will cover it.
2006-10-24 11:19:07 · answer #7 · answered by abowens2003 2 · 0⤊ 0⤋