Hello, My parents are in a HUGE amount of debt. They have large amounts of loans and a mortgage payment every month. Although we live comfortably and my parents are able to make monthly payments right now since they have good paying jobs. My question is, what happens when they are no longer able to pay off their accounts if God forbid something were to happen or when they get elder? Who becomes responsible for their debts? Would it be me and my brother?
2007-06-01 09:52:44 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Unless you've signed some document, eg. co-signed a loan, you and your brother won't be on the hook for their debt.
2007-06-01 09:58:00 · answer #1 · answered by feanor 7 · 0⤊ 0⤋
If anything happened, their "estate" would be responsible. That's basically just all their stuff. An executor would be responsible for liquidating assets, selling the house, etc., and then paying off the creditors. Not pretty.
It's rather sad that you apparently have enough common sense to see the mess your folks are in and they don't!
Debts never just "go away", you might give Ma & Pa Spendthrift a book about debt reduction for their anniversary or Christmas!
2007-06-01 10:00:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
that is pretty sad that you are concerned about this. your parents should be responsible enough to not let this happen in the ideal world. but probably they have gone into debt making your life happier. try helping out and get a job if you can, stop asking for big ticket things. and save your money if you want to go to college or get a car cause it does not sound like your parents will be able to help.
2007-06-01 10:03:51 · answer #3 · answered by lulu 5 · 0⤊ 0⤋
Hopefully they have secured insurance on these debts so in the case of leaving this world they are covered. When my father passed away the mortgage on the house was free and clear, along with the credit cards, and the car loan.
2007-06-01 10:03:43 · answer #4 · answered by Pengy 7 · 0⤊ 0⤋
No however the guy this is owed could document the debt with the valuables and whilst any coverage payouts are in probate, the debt may well be taken out earlier the kinfolk gets the money from an inheritance or coverage plans.
2016-12-30 12:51:30 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Their estate would become responsible. So the assets would be liquidated inorder to pay off the creditors. If your brother or your name is on any of the debts you automatically become responsible (you are actually responsible right now).
2007-06-01 09:58:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, you're not responsible for your parents' debt (unless you co-signed a loan or have a joint credit card account with them).
2007-06-01 09:59:32 · answer #7 · answered by Kathryn 6 · 0⤊ 0⤋
umm that's what life insurance is for,it pays for all those things.
2007-06-01 14:12:35 · answer #8 · answered by Anonymous · 0⤊ 0⤋