2007-01-24 05:20:41 · 7 answers · asked by rnrlipuma 1 in Business & Finance ➔ Credit
If you have more debts then assets, your creditors are screwed. Otherwise whatever you have will be sold by your executor, who must first pay all your debts then distribute the rest according to your will. If you die without a will, the government will do the same thing, but after costs, nobody will get much of anything...
2007-01-24 05:26:29 · answer #1 · answered by Boston Bluefish 6 · 3⤊ 0⤋
Your personal debt does not go away when you die.
Your financial world and your possessions become your "Estate"
If your debt is secured ( say by a car or house ). The person that manages your estate must either pay the loan payments, or sell the secured assets and retire the debt.
PS - If you had a will, the person that you appoint to manage your estate is called an "Executor".
If the debt amount is more than the amount of the asset that was sold, the "deficiency" must be paid out by any cash, stocks or securities that you have had. If that is not enough, the Executor must then sell off or - liquidate - what ever property that remains. The cash proceeds is then applied to the debt.
If you have a will any unencumbered assets can be transferred to your heirs as you wish. If their is enough value in your property to pay off the debt and their is excess cash available, your heirs can divvy it up - but - the Executor is entitled to a fee for his/her efforts and expenses need to be covered as well
FINALLY !!
If you have any unpaid taxes, those must be paid 1st before anybody else can get a dime.
2007-01-24 05:33:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your estate will retain the debt. Whatever is left of your estate in liquidation (selling the house, car, etc) would defease the debt to the extent it can. If there is really nothing left, I think the debt disappears (you default) unless the debt has a co-signer or some other responsible party.
2007-01-24 05:25:37 · answer #3 · answered by gls_merch 5 · 1⤊ 1⤋
One of two things. Either they will erase the debt or they will try to collect from your family. That would depend on the size of the debt.
2007-01-24 05:34:05 · answer #4 · answered by zzap2001 4 · 0⤊ 0⤋
Well normally if you leave money to pay the debts off then whoever you leave in charge will pay off those debts....Most of the time people do not leave money to pay them off so the company just writes it off as a loss at the end of their tax year...Actually I do not beleive the company loses anything due to th loss they take on their taxes...
2007-01-24 05:30:34 · answer #5 · answered by slickcut 5 · 0⤊ 0⤋
Depending on what state you live in, most likely your debt will be paid by using some of your assets before your estate can be settled between your heirs.
2007-01-24 05:23:51 · answer #6 · answered by CSUflyer 3 · 1⤊ 1⤋
money is taken from you sources. regardless of the valuables would not conceal, is written off as undesirable debt. that's genuine whether you have babies, siblings, and so on. as they are not in charge on your debt.
2016-11-26 23:21:48 · answer #7 · answered by ? 4 · 0⤊ 0⤋