If a person dies with no estate and has a credit card debt only in their name can a creditor collect from the surviving spouse or adult children?

Answer 1

No.

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Or... It may depend on the state you live in. Some states are community property states. Depending on the state law, the surviving spouse may be viewed as equally liable for repayment of the debt. The surviving spouse may want to seek legal counsel before deciding that the credit card company has no recourse. Credit card companies have unpleasantly surprised others who doubted their considerable resources. The credit card companies typically will not come after the adult children for repayment of the debt. Children have no responsibility for debts incurred by their parents unless (1) the adult children authorized the parents to make purchases on the adult children's credit cards or (2) if the adult children allowed the parents to use the adult children's personal information to acquire the credit.

The decedent ALWAYS has an estate. It may have no, but more normally less, assets than liabilities. Meaning there isn't enough assets to pay off the debts.The spouse may be liable for some of the liabilities - but normally they would be things that were incurred that the surviving spouse benefited from. Hence, generally, a credit card lender will not pursue a credit card debt that was entirely in the decedents name unless there appears to have been some reason it appears that it was incurred, (especially intentionally in anticipation of death), to be a benefit to the Survivor. Like cash advances taken the week before the person succumbed to a disease).


Finally, be aware it is how the credit was applied for that will determine if it was really individual or not. Frequently, the credit company actually had both spouses sign the application, even though the card itself has only one name.