If I die and have a large credit card debt, is any of my family responsible for the debt?

Question

Just wondering what happens when credit card debt gets out of control with elderly people and they pass away. Who assumes the loss???

I live in Texas.

Answer 1

Credit card debt is not passed on to heirs when a loved one dies, but it can still affect you. When someone dies with debt, credit card companies will first try to collect from the deceased’s estate. If there is not enough money in the estate, heirs may have to sell assets from the estate in order to cover the liabilities.

So, even though the heirs are not directly responsible for the debt, they may have to sell assets they were expecting to keep in order to repay the deceased’s financial obligations.

If, after assets are sold, there still is not enough money in the estate to cover the remaining debt, the company that issued the credit card will write off the debt. Usually, a death certificate is required as proof. Family members are not legally liable for any debt.

Be careful, however, if you are a joint account holder on a credit card. If you have a card in common with someone, you are responsible for the debt on that account if the other account holder dies.

Answer 2

The debt dies with the debtor or if they have an estate the estate through probate pays off any debt that has been established by the debtor.

We do not have a debtor's prison in the United State such as those in England of ole and if someone died while in debt the family took the responsibility for any and all debt to include becoming an indentured servant if there were no funds to pay off the debt.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

If some one have a credit card and they pass away if they had a
second person on the account then that person would be responsible no matter what, but if their name was on the account alone then the credit card company would have to stand that loss or if the credit card company insure their money then the insurance would perhaps come in action.

Answer 4

If a woman were to pass away her husband would be held responsable. If a man were to pass away the woman is NOT responsable. No other family members can legally be held accountable for any outstanding debts. Of course this was thought of back in the day where the man made the money and the wife was a homemaker, and had no income.

Answer 5

Sadly the answer is yes the family will have to pay for it. I have watched this happen recently to someone I care about. It's hard enough to lose a parent and then have to put up with being nagged to death by the the parents crediors. Don't use your credit card anymore. Cut it up and take care of your debts.

Answer 6

Your estate is left with all bill payments and comes from any proceeds of that estate when dissolved. You should have insurance to cover the debt, all credit card companies offer such insurance in case of death whether natural or by accident. But, it is still easy to get from normal insurers if you prefer. It can also cover loss of income so that the payments are made for you in case of an accident wherein you are unable to work and gain income.

Answer 7

To avoid your family from picking up the pieces of your debt a lot of credit card companies having this account care where in the time of your death it will be paid off and cancelled.

Answer 8

A surviving spouse will still be responsible, and the credit card company will have first rights to any of the deceased person's assets which may affect inheritance to the other family members, but other than that, other family members will not be responsible.

Answer 9

the relax family individuals isn't in charge for any debt incurred via mum and dad or different kinfolk (till you signed any of the loans or assured any of the credit along with your signature. if your father dies, the lenders will possibly rigidity the sale of his components so as to fulfill any or each and every of the debt. What remains after advertising off his components isn't any ones duty. you probably did no longer incur the debt, so which you're no longer in charge for it. there's a stable probability which you will no longer have any inheritance as quickly as the lenders get by way of with the valuables, yet a minimum of you isn't taking on any of his issues.

Answer 10

Often, Credit Card companies WILL start calling and haggling the family members of the deceased. Financial obligations, unfortunately, do fall upon the family. Whether or not you oblige and actually pay off the debt is up to you, though, since it is not technically in your name ;)