She is employed full-time but lives with us for practically free. She is a spender, not a saver. She has no life insurance or savings for retirement. She has a whopper of a credit card balance going. I am wondering about if she were to pass away with this debt, who is responsible for paying that off? Does the credit card companies just write it off?
2006-11-10 12:52:21 · 11 answers · asked by heymissmichelle 1 in Politics & Government ➔ Law & Ethics
She is the only person responsible for her debt.
When she dies, the credit card companies will call you (one called me on Christmas Eve after my mom died) and try to get you to commit to paying the debt. Just say no. She was over 18, and they contracted with HER for the debt she incurred. The only thing you will have to do is send them a copy of her death certificate. They write the debt off for taxes at the end of the year.
2006-11-10 13:09:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The estate is responsible for the debts. Any assets would have to be used to pay off the debts before being distributed to the heirs. If the estate has no assets, you can send the credit card companies a letter indicating that the estate has no assets to pay the debts. Attach a photocopy of the death certificate (you don't need to send a certified copy). Most credit card companies will just write off the account. However, some will try to convince surviving relatives that they have to pay. Just don't talk to any collectors. Simply refer to the letter and death certificate.
2016-05-22 04:03:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The creditors will put an attachment on her estate. Anything she owns will be put in probate until enugh is sold to pay the debt. Usually, credit card companies include a life insurance policy on all their customers so they always get their money, either from the estate of the deceased or the insurance.
2006-11-10 12:58:56 · answer #3 · answered by cdb 3 · 0⤊ 0⤋
Some credit cards have a built in life insurance policy in the mini small print of their agreements. It covers their assets if you die without insurance or assets they can encumber - they are the only ones that can collect on it and it only covers the amount of that card's balance .
Just make sure your name or your spouse's isn't on any of the cards. They might be able to come after one of you in that instance. Check with an attorney if you are really concerned. There are a lot of attorneys that give 15-30 minutes free consultation listed in the telephone book.
2006-11-10 13:01:57 · answer #4 · answered by Akkita 6 · 0⤊ 0⤋
If she owns anything the banks can put a lean on it to pay off her debt, I have personally held up a person from being buried for a few month till the matter of life insurance was taken care of, When a person dies on the 3rd of June and the credit card is charged up till the 15th, we know its fraud, felony fraud, and I will get you.
2006-11-10 13:00:14 · answer #5 · answered by roger k 2 · 0⤊ 0⤋
sounds like you need her to buy you stuff on those cards while there is still some credit limit left. You certainly are not getting anything out of the will
2006-11-10 13:12:17 · answer #6 · answered by Tim D 4 · 0⤊ 0⤋
Her estate is responsible. Matter of fact the executor will probably need to have legal council to make certain no one gets in trouble.
2006-11-10 12:58:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋
her estate will be liable - if the estate liquidatoin doen't cover the balance it is unsecured debt and the banks have to write it off
2006-11-10 12:56:32 · answer #8 · answered by Norman 7 · 1⤊ 0⤋
They will put a lien on the assets of her estate (all the property that is in her name at her death - ie., bank accounts, investments, house, car, etc)
2006-11-10 12:56:25 · answer #9 · answered by Signilda 7 · 0⤊ 0⤋
I don't know who is~ I do know that you are not!!
2006-11-10 20:42:52 · answer #10 · answered by Cynthia B 3 · 0⤊ 0⤋