What happens to the credit card debt my mother has when she dies??

Answer 1

If it is not covered by insurance through the credit card it could be pass on to the next of kin .

Answer 2

There are two types of loans: Ones that are forgiven at time of death (student loans work that way) and ones that the deceased's estate must pay off (such as a mortgage). My guess is credit cards fit into the latter category because that would be a lot of money credit card companies would be losing if they wiped out the balance of every deceased account-holder. Check with the credit card company or read the terms & conditions pamphlet that your mother must have received from the credit company at some point. Of course is your mother's estate is worth zero or less than zero, I doubt they would pursue the debt.

Answer 3

The same situation happened to my aunt when my uncle died . He left her with $86,000.00 in debt, credit card debt. What we did was hire a bankruptcy lawyer for about $1,000.00. He filed a bankruptcy claim in court for her . Be careful because proceeds from the estate(house, cars etc) could be used to pay some debt. The debt was dismissed and she now lives with her sister. Insurance money cannot be taxed but beware of companies coming after the beneficiary.

Answer 4

whilst somebody dies all of that persons sources are placed int a criminal build noted as an 'sources.' every person whom the deceased owed funds to can place a declare against the valuables. those claims are paid out of the valuables and something left over is then distributed in accordance to the will or to the heirs if there is not any will. If the money owed can not be paid out of the sources of the valuables they then replace into losses of the lenders and could't be transferred to every person else - except that individual replace right into a 'co-signer' on that private loan.

Answer 5

If it is only debt in her name and her SSN, then the debts will most likely be written off. But you have to send the necessary documents to the companies as proof she died. When my grandfather died back in 2003, all debts in his name and SSN were written off by the companies after receiving the necessary documents. This meant no one owed that money. But the debts that were in his and my grandmother's name (joint accounts), my grandmother has to pay. So if you're not a joint account holder, then don't worry about the debts.

Answer 6

If there is another person named on the accounts, that person is still liable. If the cards are in her name only, her estate must pay them before her heirs can inherit anything. If she did not have enough assets to pay them, the remaining balance is noncollectable and the creditors must take the loss.

Answer 7

If they are only in your mom's name, then send the company a copy of her death certificate and they will cancel the account. They can file a claim against her estate, if one is opened up. If there is money in her estate, those bills can be paid. If no estate is opened up, then my experience has been that the credit card company eats any balance owing at the time of death.

Answer 8

my mom's estate pays for her bills before it gets sent to the people she willed it too. Only if your name is on her cards will you have to pay for them.

Answer 9

it goes to you my man hope she as insurance