do debts die with you ?

Answer 1

only if you take out payment protection. Except if you comit suicide then you are not covered at all (even life insurance).

Answer 2

It depends on the type of debt and whether or not you have an estate (i.e. - assets left behind).

For secured debt (like a mortgage), the lender can have the property (house, in this case) sold and the proceeds used to settle the debt.

For unsecured debt (like credit cards), if there is an estate, the executor of your estate will use assets in the estate to settle your debts. If you die without an estate (i.e. - no money or valuables), the unsecured creditors get nothing.

Answer 3

The primary debt of any estate is the funeral bill, this is paid from any assets before any other creditor.

If you do not have any assets then your creditors can claim against your estate but will not get any money. It is the job of the person administering your affairs to let them know.

However if you have a pension which pays out on death, or death in service this can be paid out and does not form part of your estate. This money goes directly to your nearest relative : spouse, kids, brothers/sister, grandparents etc or to who ever you have given as the beneficiary.

Answer 4

Further to the above. Debts form part of your estate - except for debts in joint names which will fall on the surviving partner as a matter of course.

Answer 5

What nobody has said is when you although any debts can be claimed against your estate until all that money has gone, nobody else can be chased for debt unless they signed as guarantor etc.

So, debts don't die with you, but only chase your estate to the boundary of the estate, no further...lol

Answer 6

No! Debt has to be paid after death from a person's estate. After all debts are paid, the remainder of the estate is divided as per a person's trust or will.

Answer 7

Debts do die with you

but some creditors make an attempt to claim off the deceaseds estate....depends on who the money is owed to and how much....most do not stick

Unfortunately....creditors have a way of making a surviving spouse or close member of the family believe they have to take the debt on....and most do out of principal...but they are not oblidged to

Answer 8

Generally speaking, the simple answer is 'No'. If there is any value in your estate after death then any debts that you had get paid from the residue from the estate.

Answer 9

Occasionally they do but in most occasions they do not. It really depends on the contract (actual or implied) that "caused" the debt

Answer 10

Nope! Your estate is responsible. That's why death notices are published. And, that's why life insurance was invented.