My mother in law passed away recently leaving behind a $8400 credit card debt. She left no will and has no estate. Her name has been removed from all accounts, however her name is still on the title of the house I currently live in along with her brother's. The credit card bill apparently went to collections and an agency is calling demanding the balance in full, which neiter I nor my father in law have. My wife insists that we send monthly payments even though the agency told me they don't accept payments, only the balance in full or a settlement which they want in a lump sum. I don't want anything to happen to the house but nobody can afford to pay this bill and she had no liquid assets. Her brother will not remove her name from the title of the house. The agency said that they could send the account back to the original creditor if we don't pay them and that they could send a 1099 form to her estate. What should we do?
2007-03-20 12:23:13 · 7 answers · asked by sneakytrickster 3 in Business & Finance ➔ Credit
Don't believe anything the collections agency tells you - they'll say anything to get paid. Send them a certified letter stating that the debt belongs to your deceased mother-in-law, who left no estate. Attach a copy of her death certificate, and keep a copy of the letter. Don't offer any other information, especially the fact that she's on the property's title. If they keep harrassing you, tell them to stop their harrassment (use this word), and that all future correspondence needs to be in writing.
Most likely, this will be the end of it. In a worst-case scenario, they may win the ability to attach a lien to the property. Even if that happens, all it means it that the $8,400 will be paid out of the proceeds of the sale of the house when it is sold - but they can't force it's sale. And if the house is never sold, the amount would never get paid. Good luck.
2007-03-20 12:50:03 · answer #1 · answered by Marko 6 · 2⤊ 0⤋
Seeing as how she does have assets those could be attached. Be them liquid or not. I am not too sure about the 1099 but I think it has to do with them forgiving the debt and some kind of liability that can be counted towards something. You can contact your local bar association and ask for an estate lawyer that can hopefully answer these important questions for not much money. Best to you.
2007-03-20 12:34:51 · answer #2 · answered by biker_beeotch 2 · 0⤊ 0⤋
If she owned part of the house at the time of her death, the COULD place a lien against the house. As a rule, you can tell a collection agent is lying when you hear their voice. If they do send a 1099 to the estate, the estate would then owe income tax on the amount forgiven. At $8400 taxable income, that comes to maybe $900 in taxes.
2007-03-20 14:04:00 · answer #3 · answered by STEVEN F 7 · 0⤊ 1⤋
There is no way the credit card company can demand full payment from a deceased. You will need to wait for the court to past down judgement on what to do with the house should the credit card company decide to file a claim in court. I doubt they will do it because it would be penny wise pound foolish. If I were you, ignore the payment demand.
2007-03-20 12:50:30 · answer #4 · answered by SGElite 7 · 1⤊ 0⤋
You are not liable for her credit card bill. If the father-in-law you refer to was her husband, he may be liable for it, depending on the state. The collection agency can only submit the bill to her estate, which when settled, will settle the cc debt. The 1099 they mentioned probably is referring to forgiven debt, which is considered taxable income by the IRS.
2007-03-20 12:40:25 · answer #5 · answered by Brian G 6 · 1⤊ 0⤋
i might have achieved what the above individual pronounced, yet Yahoo! might have locked the account now they are conscious you prefer to income get entry to. They deleted my account a pair of three hundred and sixty 5 days in the past and that i lost all my own emails and so on. They could not clarify why, and while i attempted to reclaim it mentioned i could not grant them with the ultimate postcode. i've got in basic terms ever had 2 in my existence, so as that wasn't real! attempt the above and let us know in case you have any luck! in case you do, forward each little thing to your self rapid till now the account is closed.
2016-10-19 05:03:33 · answer #6 · answered by dudik 4 · 0⤊ 0⤋
Tell them she moved and you do not know where.
Then if they keep calling get a P.O box and have all of her mail sent there.
Then foward her address and never pick up her mail you are done forget about it and turn up the AC because you are one cool cat now
2007-03-20 12:31:26 · answer #7 · answered by ashlandtree 3 · 0⤊ 3⤋