When someone dies, who is responsible for their debt? the spouse, the children, or the parents?? Or does the debt disappear?
2007-01-24 04:38:39 · 10 answers · asked by Confused 2 in Business & Finance ➔ Credit
There are a lot of factors that can play into it but generally, debt is paid out of the estate. Certain debt has a higher priority over others and can be associated with various assets. (example: a home repair loan would be paid out of the proceeds of the sale of the house.
Martial debt is not excused and is the responsibility of the spouse.
Debt does not usually flow to the children or the parents, unless they are party to the debt. (cosigners of a loan for example).
There is no correct answer to your question without knowing all the facts. If the amounts are substantial you should contact a lawyer to review your options.
2007-01-24 04:56:16 · answer #1 · answered by Ooh, Ooh pick me 5 · 1⤊ 0⤋
Their estate is responsible for their debt. Their spouse also may be responsible, but the debt is not going to be transferred to children or parents.
2007-01-24 04:46:11 · answer #2 · answered by M O 6 · 0⤊ 0⤋
The person's estate (their financial holdings) after they die is responsible. If the value of the estate does not cover the debts, they are passed on to next of kin.
2007-01-24 04:46:10 · answer #3 · answered by Brian L 7 · 0⤊ 0⤋
The person's estate pays off the debt.
2007-01-24 04:46:02 · answer #4 · answered by happybibottom 2 · 0⤊ 0⤋
I know that it would go to the estate; leftovers I can't tell you for sure.
I used to work at a check collection company, and I know in this case, once someone passes away, the check is no longer collectable. I'm not sure if this is the case for all collection agencies however.
2007-01-24 04:48:23 · answer #5 · answered by meliss 2 · 0⤊ 0⤋
the spouse inherits it.if no spouse, because they have died also,i think the amount owed can be deducted from the childrens inheritance.so,in that situation,the estate pays.
2007-01-24 04:47:45 · answer #6 · answered by kyra k 4 · 0⤊ 0⤋
No one has said what happens if their is no estate to pay off the debt !!!!!!!
2007-01-24 10:23:03 · answer #7 · answered by chazzer 5 · 0⤊ 0⤋
sometimes goes to parents, but often to wife/husband. children only if they have no other parent
2007-01-24 04:45:58 · answer #8 · answered by pooshna66 3 · 0⤊ 0⤋
next of kin is stuck with it.
i'm not sure what happens if they were all alone
2007-01-24 04:46:19 · answer #9 · answered by retired 6 · 0⤊ 0⤋
It gets buried with them.
2007-01-24 04:46:57 · answer #10 · answered by mom25 1 · 0⤊ 0⤋