i was under the impression that the debt or loans are only in the names of people who take them out and no one else is liable to pay for them in the event of a death unless you have co-signed.
was i given the wrong impression?
2006-11-22 10:36:03 · 9 answers · asked by me 5 in Politics & Government ➔ Law & Ethics
someone i know had life insurance policy for both him and his wife but when she died the insurance refused to pay out on some petty technicalty so i dont think having a life insurance is that 100% either
2006-11-22 11:01:33 · update #1
No you are right.
However, upon death all loans and other financial obligations are not dismissed.
For instance. Any debt that is secured by property of any kind the financial institution can repossess to cover the balance of the loan. They can also attatch any estate of the deceased to help pay any loans.
A bank will probably reposses a car if financed. A mortage company will foreclose on a house that is financed and so on.
No Person not signed on the contract can be held responsible for the debt!!!!!
But a bank will usually let you assume the loan on a car rather than repo it.
I hope this has helped you.
2006-11-22 11:18:56 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It's not quite so straight forward, in the UK if the debt is in joint names they are "jointly and severally liable" so the survivor must continue to repay the debt.
If the debt is in one name it must be paid from the money which has been left. If the debt exceeds the money which has been left then the heirs cannot be expected to pay the excess.
If the debt is a fuel bill then there is a risk of being cut off if it goes unpaid but it's worth negotiating if a death is causing financial problems.
There can also be complications if assets (eg a house or a bank account) are in joint names.
When in doubt, try the Citizens Advice Bureau.
2006-11-22 11:08:12 · answer #2 · answered by leekier 4 · 0⤊ 0⤋
I am assuming u r British as this is the uk site. If the loan/credit card is in yr name only then the debt dies with u. However, if it is a joint loan then when u die, the debt passes over to the other party.
If u r American then sorry dont know about American law.
Natalie...........sorry girl but u r wrong. Not sure where u got your information from, but if u read the small print on any applicaton form for a loan/credit company u will find yr answer.
If u r still not convinced then contact a solicitor or the CAB.
2006-11-22 10:59:45 · answer #3 · answered by english_rose10 3 · 1⤊ 0⤋
i'm no longer probably beneficial, yet i could think of that it may only be written off. I propose if the non-public loan is in 2 human beings's names then the different individual could ought to hold the debt. in spite of if it extremely is barely debt that the only individual outfitted up on their own, then how is it truthful to make the different residing individual pay for it except of direction you stay off that debt because of the fact they provide it to you interior this form of money and so on. uncertain if this makes plenty experience anymore lol.
2016-11-26 02:00:44 · answer #4 · answered by mimbsjr 3 · 0⤊ 0⤋
As I understand it, when you die, if you leave debts these have to be settled from your 'estate' i.e. whatever you own of value. This might mean sale of property or belongings. If you have joint debts then the other person may decide to take over the balance of your debts once your goods and chattles have been disposed of and money raised to repay as much of the debts as possible.
2006-11-22 11:03:20 · answer #5 · answered by Anonymous · 1⤊ 0⤋
some debts in some states where the person is married may still be owed by the spouse.
Also the debt is owed by the estate, if there is a house, or a car or other property, the debtors will expect to be paid from the sale of these during probate
2006-11-22 10:40:12 · answer #6 · answered by Anonymous · 0⤊ 1⤋
I would also like to know the correct answer to this question, because I have been told that if you are in debt when you die, your family is responsible for any outstanding debts and that they are liable for them
2006-11-22 10:51:58 · answer #7 · answered by Sierra One 7 · 1⤊ 0⤋
In the UK your debts do not 'die with you' they are passed to your next of kin ie mother, husband, child.
They then need to settle your debts with any assets which you own.
If you are smart and take out life insurance like everyone should then all debts will be paid.
2006-11-22 10:48:18 · answer #8 · answered by Natalie D 3 · 0⤊ 2⤋
your debts die with you. if they are in joint names they pass to the surviver
2006-11-22 10:44:29 · answer #9 · answered by Anonymous · 1⤊ 1⤋