And what if that cardholder leaves behind no assets except for a mortgaged home?
2007-01-02 01:55:47 · 8 answers · asked by Doris T 1 in Business & Finance ➔ Credit
The card company will make a claim on the estate. When the home is sold the Mortgage will be cleared, then the creditors (such as the Credit card company) will be paid. Anything left will be divied up as per the will.
2007-01-02 01:59:00 · answer #1 · answered by Marc 2 · 0⤊ 0⤋
The debt becomes a debt of the person's estate. The estate is responsible for the debt, not the heirs. If there are any assets, the debt will have to be paid from them. If the only asset is the house, nothing else, and you do not want to sell the house, the best thing to do (if you are the heir, and the equity in the house is greater than the credit car debt) would be to pay the debt through the executor of the estate. This all assumes of course that there is a will involved.
2007-01-02 02:02:26 · answer #2 · answered by David S 3 · 1⤊ 0⤋
Well, when a cardholder dies, unfortunately the repayment is left up to the estate. What will happen is the executor will be responsible for handling the business. The executor can settle owed amounts for pennies on the dollar and then pay them off. If they have no assets, the house must be sold and all proceeds go to paying off debt. Best thing to do if you are the executor is to get an attorney to handle all of this.
2007-01-02 02:02:52 · answer #3 · answered by Melissa H 1 · 0⤊ 0⤋
There is insurance that be put on a credit card so in case of death the amount is paid off but you have to pay a percentage of your total in order to get it. The executor can work out something with the credit card company so the heirs can do a payment plan. Especially if there is not much money involved. Unless the house is sold and the monies pay off debts.
2007-01-02 02:07:22 · answer #4 · answered by Tapestry6 7 · 0⤊ 0⤋
What is said aabove is true.....
What should be added is that: If there is NO assets in the estate to have a claim put against, the debt is ended...
The credit card debt CANNOT be passed over to a next of kin...
2007-01-02 02:09:54 · answer #5 · answered by donrentf 3 · 0⤊ 0⤋
Generally, unless otherwise stipulated, debt is left to the cardholder's heir, or next of kin.
2007-01-02 01:58:06 · answer #6 · answered by Marisa 2 · 0⤊ 1⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
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2007-01-05 01:06:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋
it gets passed onto the heirs, after the assets are distributed to pay off the debt.
2007-01-02 01:57:20 · answer #8 · answered by jfahd 4 · 0⤊ 1⤋
It goes against his estate.
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2007-01-02 01:58:38 · answer #9 · answered by tora911 4 · 0⤊ 0⤋