Or do the credit card companies go after immediate family members to pay up? Or do they demand the will executors to pay it off?
2007-11-01 10:44:57 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Your death does not make anyone else responsible for the debt. Your relatives are only responsible for the debt if they were on the account as a co-borrower, guarantor, or co-signer while you were alive.
Your estate must pay off all debts before distributing to heirs if there are enough assets to do this. (Not just cash, but including the value of your house, etc.) If there isn't enough, then they have to write it off.
2007-11-01 11:34:58 · answer #1 · answered by Ted 7 · 1⤊ 1⤋
The credit card companies will try to collect from the estate first and if there is a co-signer, they will be responsible for the debt. However, if there is no estate to collect from the credit cards can not pursue collections from the family. They may try to get the family to pay the debt, but can not legally force them to. Simply mail a copy of the death certificate to the credit card company (certified mail) and they should take care of the rest.
2007-11-01 10:56:33 · answer #2 · answered by Dr. D 7 · 1⤊ 1⤋
Credit card companies DO NOT, nor CAN NOT, collect from a deceased person...that is the only name on the card.
Unless of a husband ~ wife situation, then the living person is responsible for the debt.
2007-11-01 10:54:14 · answer #3 · answered by Anonymous · 1⤊ 1⤋
I used to work in this industry, if you die and you credit card has outstanding payments left on it, then your immediate family will be left the debt. However, if you put an insurance policy on your credit card then the monthly payments that you made will contribute to paying off the debt and you family will not be left with the debt. But you have to be careful with the insurance and credit card you get, because some do not pay in the case of instead death. If you commit suicide the insurance is void and the family would be left with the debt. It is also depending on your age at the time. I hope this answer helps
2007-11-01 10:52:32 · answer #4 · answered by Christina 3 · 0⤊ 5⤋
I believe that it will go to any co applicants first. then if there are no co apps, then if you are married it will go to your spouse to pay off. I believe it stops there, however there are some products that banks offer that cost a percentage of your balance that covers up to a prenegotiated amount in the event of your death.
2007-11-01 10:51:29 · answer #5 · answered by tcarrw 3 · 1⤊ 1⤋