And also, does anyone know what happens if that parent has more than one child? Does the debt get split up? Does the credit of the children get worse?
2007-11-21 12:31:26 · 13 answers · asked by Patreeshh 1 in Business & Finance ➔ Credit
Wow! People are stupid.
There are alot of factors. First off if the parents are married or shareing residence then the other Parent will take over. If the other parent is already dead and this one dies then they like to pass it on to their children (you do inherit your parent's debt).
But it's not so easy to say that. If there is a will, the person who gets the most gets the debt. If you take the house or car and nothing else, debt goes to you.
Then it depends on what the places the Debt owed decide. They like to go after the oldest child by blood, they are ready to go after siblings. If they can't get to one child, they may switch to another. Some times they try to arrange things so everyone pays so much of the Debt,.. in that case it's the first child/relative to go to them that ends up paying the less because they can set it up and approve them to go after many relatives.
The greedy people some times try to collect from the dead because they can't get their systems straight. Go tell them to go visit the grave so they will be assured the person is dead.
Now some smart people can set up their Debts so when they die it vanishes with them,.. but noone really does that.
There have been times where the Child was under 16 so they waited until they were 18 to tell them about the debt they owed and wouldn't leave them alone. There have been children approched at 16-17 with demands to pay their parent's debts.
Just what someone needs when they are greiveing,.. some jerk hounding them for money, eh?
If you want to get people to leave you alone you can say you have nothing of substantial value. You know,.. say like you don't own a house, you don't have any bank accounts ( they would like to trick you so they can get your bank account number), you don't have anything worth over 20k,.. your car is worth less then 500,.. you don't have any stocks, bonds, or saveing accounts,... and so on.
2007-11-21 12:50:27 · answer #1 · answered by sailortinkitty 6 · 1⤊ 4⤋
The only way you'd inherit the debt is through inheriting money from the parent. The debt would have to be paid off before the remaining money could be split between siblings. If the debt is more than the money inherited then it gets written off.
2007-11-21 12:38:54 · answer #2 · answered by mosaic 6 · 2⤊ 1⤋
Outstanding debts go to probate after one's death. The money in the estate must be used to cover the debts. Any remaining is divided up as indicated in the will.
The debts don't just go away at the time of death, the creditors are still owed the money, so yes, if you are the executioner of the will, you would be responsible for paying the debts. If there's no money left and you were not a co-responsible party on the account, then there's nothing left to be done.
2007-11-21 12:46:36 · answer #3 · answered by Anonymous · 2⤊ 1⤋
We may have different answers because people giving answers here live in different countries.
In the US, a deceased person's possessions must be placed in "probate," a process which counts the assets, values them, and notifies any creditors. A creditor with a mortgage against the house can foreclose the house unless the deceased's spouse lives in it. If the spouse lives in the house the spouse is protected by the "homestead exemption," which allows the spouse to stay in the house and continue paying the debt. In general, creditors with security in specific assets can collect against those assets. Unsecured creditors can collect only if there are funds left over after all secured creditors are paid.
In the US, it is ILLEGAL for a creditor to try to collect from a minor child.
2007-11-21 14:11:13 · answer #4 · answered by RickB 2 · 5⤊ 0⤋
Your parents' debt is not inherited. What happens is, when they die, the remaining family will need to sell their assets and split them up. The creditors have the first dibs in them. So, out of all the remaining assets, you pay off the debts first, then rest is divided among the family members.
If there isn't enough asset to pay off all the debt, then the creditor has to write off the unpaid portion. There is no way they can make children responsible for payment.
2007-11-21 12:36:12 · answer #5 · answered by tkquestion 7 · 8⤊ 1⤋
The debt dies with the debtor. You are not responsible for you parents' or anyone else's debts. However, if your parents have an estate, then the creditor can try to collect from the estate after the debtor has died.
2007-11-22 10:06:30 · answer #6 · answered by Ti 7 · 1⤊ 0⤋
All debts owed are taken from any assets owned by the estate at death...you will inherit what is left.
2007-11-21 14:13:58 · answer #7 · answered by Anonymous · 1⤊ 0⤋
When a person dies, his/her estate is responsible for paying off remaining debts. If the estate does not contain sufficient assets to do so, the debt dies. Family members are not legally responsibe for the debts unless they are coborrowers or cosigners for them.
2007-11-21 13:22:28 · answer #8 · answered by Anonymous · 1⤊ 1⤋
I think the only repayable debt is a mortgage because there is collateral to go along with it. You could either pay the mortgage or sell the home to fulfill the mortgage. Other debts like credit cards do not have to be paid back I think. I believe you have the right to refuse to pay them, even if they ask for it.
2007-11-21 12:41:07 · answer #9 · answered by JM 6 · 1⤊ 3⤋
Debts are not inherited. A co-signor would be responsible for the debt if the signor (first party) could not pay.
2007-11-21 13:37:28 · answer #10 · answered by !!! 7 · 1⤊ 1⤋