This if you dont have any kind of insurence. I know its really stupid not to get it, espically for you house or on your life. What will really happen? and who pays?
2007-01-02 15:48:38 · 11 answers · asked by infiniteson 3 in Business & Finance ➔ Personal Finance
If you have no estate or a power of attorney then nobody is obligated to pay these bills.The companies have to eat them.Now your home, the Bank ,if you have a mortgage can foreclose on it.Most credit cards have insurance that will pay the balance as of the date of death off.But they certainly can't come and get you to pay,right.
2007-01-02 16:07:41 · answer #1 · answered by one10soldier 6 · 0⤊ 0⤋
In States with community property laws then the living spouse would assume the debt. However, the decedent's estate would be responsible for the debt and if it is a no asset estate then the debt would be a wash. I recently had this experience with my father's passing... It was a no asset estate. An item like a vehicle which had an outstanding balance would be repossessed by the Bank. However there is a number of days they have to claim the amount to the estate as well.
2007-01-02 16:00:19 · answer #2 · answered by Krazee 3 · 0⤊ 0⤋
Nobody has to pay the credit cards, utility bills, etc., unless it is designated in the will. House payments go to the heirs (it's in the mortgage papers), the car is refinanced by whoever the car goes to...or the car goes back to the bank.
If there is no estate, no will, then this is how it's done. I know, I just went through it with a family member.
2007-01-02 15:55:37 · answer #3 · answered by Barbara 5 · 0⤊ 0⤋
If you are married then your spouse is legally responsible for your debt. If you are single, then anything you own of any value (car, house, Beanie Baby collection, etc) can be confiscated and sold. The proceeds are applied to your debt, and the company would have to write off any remaining balance.
If you are married, it's a good idea to get at least a "term" life insurance policy. The premium is less than a "whole life" policy, but you don't have any cash value in the policy if you cancel it.
2007-01-02 15:56:17 · answer #4 · answered by blondie172 2 · 1⤊ 0⤋
Any existing spouse. Your debts will have to come out of your estate somehow. Because you have a mortgage, you must have some insurance--probably just fire though.
My mortgage is insured in the event of my death--it pays it off. It's a cheap ad-on, btw.
2007-01-02 16:00:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
all debts are due upon death. They can be settled from the deceased's estate. That's why you should carry a life insurance policy equal to the amount of debt you owe + about 10K for funeral expenses.
2007-01-02 15:58:28 · answer #6 · answered by Doug R 3 · 0⤊ 0⤋
the same person who inherits your estate, ie your beneficiaries
that person inherits both your assets and your liabilities.... if that person decides to waive his right to the inheritance, then he is absolved from his liabilities arising from your debt.
in that case, the estate is liquidated and the proceed is used to pay off the loan.
if you are married, with no prenuptual... your wife will inherit the loan, since it is considered that both of you enjoy the proceed of the loan while you are stil alive. thats one unique benefit of having prenup. you can argue against it of course but that take a full court to decide.
2007-01-02 17:56:44 · answer #7 · answered by SJ 2 · 1⤊ 0⤋
If you do die and don't pay for your bills then your family have to pay for them. Cuz if they don't get payed there will be big trouble!
2007-01-02 15:58:22 · answer #8 · answered by SenlenaHorris18 1 · 0⤊ 0⤋
Your estate must pay your creditors before your heirs get anything.
2007-01-02 16:02:41 · answer #9 · answered by Anonymous · 0⤊ 0⤋
your estate unless you have credit life and that is a wise thing to have....
2007-01-02 15:56:12 · answer #10 · answered by cork 7 · 0⤊ 0⤋