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If your husband who died with no will had credit card debt in his name received 1099-C cancellation of debt must you list this income on tax return?
You must include all reportable income on the final tax return. Under section 61 of the Internal Revenue Code, forgiveness or discharge of indebtedness is gross income for tax purposes, so looks like that is what you need to do.
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The answer depends on the details such as: When the account was opened whether you live in a community property state What was purchased- did you benefit …from the purchases Whether your property was owned as tenants by the entirety You should consult with an attorney before paying those credit card balances.
The estate of the spouse is responsible. IF both are on the same checking account then the FULL amount of that checking account can be considered the spouses estate too.… Even if the account is closed just prior or just after death, then the amount in the account months prior is still considered a portion of the estate.
If you receive a civil summons for a lawsuit for credit card debt and your only income is from disability benefits can you have a judgment entered against you or be arrested?
You cannot be arrested for a civil infraction. The judgment means they can attempt to collect the amount. In some cases they may attempt to take property to sell to get their …money. You need to see if there is a way to work out a payment plan. As long as you show you are making an effort, even making small payments, and are destitute, there isn't going to be much they can do. More Contributor Opinions As noted you cannot be arrested for debt. All Social Security and private disability benefits are exempt from attachment by a judgment creditor. The creditor can still sue and receive a judgment which may or may not be enforceable against other property belongin to the debtor. Please be advised, if the debtor receives a Motion of Discovery (interogatory, disclosure, etc.) directly from the court (not plaintiff's legal counsel) he or she must respond or risk being cited for contempt.
Debt cancellation is a type of credit insurance service provided by the credit card company usually for a monthly fee. In most cases, the card company will wave the outs…tanding balance on your card in case of your death or long term illness. The fee charged is a fixed percentage of your monthly outstanding balance. Debt cancellation is usually sold in conjunction with debt suspension and is termed DCDS. Debt suspension is a similar type of service, but instead of canceling the outstanding debt, the monthly payments may be suspended for a short period of time such as one year in the case of involuntary unemployment or some other type of unexpected life events.
Answer Their estate is responsible for the debt. First, if the deceased has a home, property, condo, cars, etc., the estate will sell it off and pay the debtors. If the…re are no assets, the debtors will lose their money. If there is no will, the estate will be distributed according to the intestacy laws.
The credit card company will first try to collect from the estate. Creditors are not allowed to put the extra debt baggage on survivors if the estate is insolvent. Creditors w…ill most likely close the account and write it off when they receive the death certificate and has filed a claim in probate towards the estate. Only way the survivors are responsible for the debt is if they want to pay off the debt themselves or if they are the joint owner of the debt. More Information: I just went through Probate court with my Grandma's estate and she had no estate to resolve so Creditors had to close the account and write it off. They are not allowed to come after heirs because they are not responsible for the debt because they are not co-owner or a co-debtor on the debt. If the person who died owns a car and owes money to the bank, then the bank will repossess the car and auction it off. The difference between the loan and how much they got in the auction will determine if they will file a claim on that person who died on their assets to make up the difference.
If they are a cosigner for the debt, yes. Just because they are married doesn't make them automatically liable for the others debt, but it may very well make them responsible …for it. Why is this? Because when you are in a boat sitting on opposite ends, when Evan a small ripple or change in weight can topple the boat. Sit in the middle, and co-ordinate your efforts...
Immediately contact your credit provider, apologize for the situation and ask what you can do about it. There will be a solution, and they would much rather you work with… them to find this solution rather than bury your head in the sand and hope the debt will go away. It won't. With luck you'll find a way of explaining how you've let the matter reach the summons stage.
If you are not currently responsible for your husband's credit card debts, that situation would not change upon his death. Howvever, his estate might be expected to pay off th…e balance of any money owing. Whether or not that happens depends on how his estate is bequeathed, planned and managed. Speak to your husband about his will, insurance and estate planning (or the lack of such). You may have to take your question to attorney who is familiar with your state's inheritance laws to get specific information.
Are you responsible to pay a debt in NC if your spouse dies and has a will and leaves credit card debt with cards in her name only?
No. NC is not a community property state. Therefore the debt belongs completely to the deceased. Probate procedure for collecting and distributing assets and paying debts, ar…e governed by state law.
Who is responsible for credit card debt if your spouse dies and the credit card is in his name only and husband leaves everything to his son?
%DETAILS% Answer The "estate" of the deceased, including assets and debts are filed in Probate Court. If there is a will, that also enters into the filing. The… way it is distributed is dependent on the state of residency governing statutes. In some states the estate needs to exceed a specified amount, before a filing is required. Most states allow the surviving spouse, to keep the majority of assets, including the homestead. Under, of course, the provisions of the secured lending contract,(mortgage), if that applies. Whatever is not exempted and/or distributed by law to the surviving spouse is used to pay off outstanding debts. If there are no attacheable assets, the debt in this situation is not collectable.
What happens when parents die and their debt is more than the assets by over 60000 in credit card debt and is this debt cancelled?
Answer the debt dies with them... you owe nothing
They can, and are actually required, to submit your debt to the IRS. If they have written the debt off, it is essentially income to you. It is as if they gave you the amo…unt of the debt. Which means that you have to pay income tax on that income.
You are because you incurred the debt.
In New Jersey is a spouse responsible for the credit card debt of her husband if the credit card is solely in his name?
The husbands estate is responsible, but not the wife directly. The amount of the husbands debt will be subtracted from his assets after his death. His wife will usually inheri…t what is left, unless the husband left other instructions in his will (ie leave everything to charity). If the husband dies and his debt is larger than his assets, then the creditors usually lose the difference. This is all handled through probate court, and a judge can choose who gets what.
The credit that was in his name only will not affect your credit in anyway. They may be able to come after his estate. Contact an attorney for more details with that end of it…. I would let them know he died and if they ask or keep harassing you send them the death certificate.