2007-06-22 08:04:41 · 19 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
By law, when someone dies, a notice is placed in the newspaper asking for anyone who may think that they're a creditor to send in their claim to the Solicitors of the deceased's estate. The credit card company would be classed as a creditor.
When monies are distributed to creditors, money goes to preferential creditors first (Tax man) then the Solicitors bill, then the other creditors and any money left to relatives (as per the will).
Sometimes, a policy may clear certain loans etc... but these would have been checked out by the Solicitor.
2007-06-22 11:22:18 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Any money owed will be payable from this persons estate if there is enough in the estate to cover the bill after funeral expense. If the person leaves you all the money and estate then you are liable to pay this debt from the estate. Most debts can be recovered from the estate of the deceased but even then there is a pecking order, funeral gets first call on estate.
2007-06-22 08:19:01 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Sort of.
If their is money in the estate, a house or other monies, debts must be paid first.
If the card was in joint names, the second person will become responsible even if the purchases were the deceased.
If there is no money in the estate, then yes. However family are often contacted to see if they are willing to pay.
2007-06-22 08:18:28 · answer #3 · answered by Fourcandles 4 · 1⤊ 0⤋
Credit cards are generally unsecured debt. The credit card company will try to collect from the heirs, but there is no obligation on their part to repay. If the debt is large, the credit card company may try to collect from the estate and then the executor would have an obligation to pay the debt -- but that does not mean it HAS to be paid. It's unsecured, so if your estate defaults on the debt what's the credit card company going to do? Report a dead guy to a collection agency and raise the dead guy's credit score?!?!
2007-06-22 08:09:10 · answer #4 · answered by kja63 7 · 1⤊ 1⤋
No. The credit card company has a claim on the value of the deceased estate. It would have to be paid before the executors distributed the rest of the assets.
2007-06-22 08:31:29 · answer #5 · answered by Anonymous · 1⤊ 0⤋
No debts die with you, however there is insurance you can take out as you can for critical illness on your credit cards. The family/spouse does not lose anything, they can only inherit what is left AFTER all debts are settled, they may feel that somehow they are 'paying' but they aren't.
2007-06-22 08:18:59 · answer #6 · answered by groovymaude 6 · 1⤊ 0⤋
Having been in busines for many years I have experienced debtors passing away leaving me unpaid.
Strictly speaking the debt goes to the estate, invariably a solicitor is involved, and they make sure the debt is not paid if they can help it.
2007-06-22 09:17:42 · answer #7 · answered by Anonymous · 1⤊ 0⤋
No credit or debit cards can still be used till the company is notified that the person has died so it is important for the estate to know what cards or there since all charges will be valid.
2007-06-22 08:17:58 · answer #8 · answered by ALASPADA 6 · 1⤊ 0⤋
Not in theory, they still have a claim against the estate of the deceased. It also depends on whether the customer had insurance cover on death for the debts.
2007-06-22 08:08:49 · answer #9 · answered by Ahwell 7 · 1⤊ 0⤋
No. The credit card debts die when the statute of limitations runs out, or usually within a short time after a person dies, like 2 years. Then its just final.
Death is the ultimate form of personal bankruptcy.
2007-06-22 08:07:08 · answer #10 · answered by krollohare2 7 · 1⤊ 3⤋