What happens to someone's debt when they die?

Question

I figure that if the person is married, their spouse becomes resposible for playing any debts left behind, but what happens if this person is unmarried? Do their children inherit the debt? Do the companies simply consider the money lost forever?

Answer 1

The estate is responsible for the debt.

Answer 2

In the case with my uncle who passed this year there was alot of debt, but no money. The bills were written off due to the fact there was no executor or estate head, my family was advised not to apt one or that person would be responsible for his debt. On another note-When my husband passed I was not responsible for any loans I was not on, however the merchandise had to go back unless I was willing to take over the loan and take up payments.

Answer 3

Any unsecured debt is uncollectable. Unless there is another person on the account.
Secured debt, such as a mortgage, would need to be paid by the estate until the security (collateral) has been cleared, sold or otherwise distributed.
No one inherits a debt without inheriting an asset. example: you may inherit a house, but it is still subject to any existing mortgage.

Answer 4

Well this is the same question I asked my solicitor. His reply was.

1. If you have no Estate then your debt die with you.

2. Your family or friends cannot be held respobnsible for any debts left in your name when you die.

3. If you have moneis left in your bank account when you die, that can be used to pay any debts.

Hope this helps.

Answer 5

Depending on the type of debt it is the outcome may be different. Some loans state that if the person with whom's name the loan is in die, the loan does not have to be repaid. Financial companies have insurance for that type of thing.

Answer 6

i'm fairly certain that the children to inherit the debt. some companies who are owed small amounts of money will forgive the debt (phone bills, electricity etc).

Answer 7

I know one thing for sure........they are off the hook. But I don't know about children inheriting the debt. I mean people try to pay off those types of debt but I don't know if they are legally bound to or not.

Answer 8

Hello, if a person takes over the dead person's estate, that person is responsible for paying the debt and all other bills owed.

Answer 9

The debt goes into probate- the bills are paid off from the estate money, good luck.

Answer 10

THEY AUTOMATICALLY, TAKE YOUR BELONGINGS AND ESTATE AND SELL WHAT THEY NEED TO, TO PAY OFF YOUR DEBT. THE DEBT IS NOT LEFT TO THE CHILDREN OR GIRLFRIEND. MY FATHER HAD DIED AND HE HAD DEBT, THEY COLLECTED WHAT THEY NEEDED TO, AND GAVE THE REST OF THE MONEY TO OUR FAMILY. SO YOU WOULD BE FREE AND CLEAR. AFTER THAT, BUT IF THEY CANNOT FULLY PAY IT OFF, THEY TRY TO COLLECT A % OF IT FROM SOME TYPE OF FAMILY MEMBER. YOU CAN ALWAYS REFUSE. IT IS NOT YOUR RESPONSIBILITY TO DO THIS ON YOUR OWN. GOOD LUCK!!!