Debt Responsibility

Questions relating to the responsibilities for debts left by an individual that has died.

2,300 Questions
Credit and Debit Cards
Debt Responsibility
Credit

Who is responsible for your credit card debt after your death?

Generally speaking, the estate is responsible for the debts of the decedent. If a person owned any property at the time of their death that property comprises the estate and their estate must be probated. Depending on the size of the estate, many jurisdictions have less formal procedures for small estates. The decedent's debts must be paid before there can be any distribution to the heirs. If the assets of the estate are not sufficient to pay those debts the estate is declared to be insolvent. There is no liability for personal debts if the estate cannot pay. The lender can repossess property in the case of any secured debt such as one for the purchase of an automobile. Of course, in the case of a mortgage, the lender can foreclose and take possession of the property.

Creditors have a statutory period in which to file a claim against the estate. State laws vary. You need to check the laws of your state to determine if any special provisions may apply. In community property states, credit accounts opened in one name during a marriage may automatically become joint accounts. The situation changes in the case of JOINT account holders. If you are a joint account holder or co-signer with the decedent then you will be held responsible for full payment of the outstanding balance.

Note that many creditors will try to get payment from heirs. Check with an attorney before making any payments toward any debt of a decedent. If there is no estate, most creditors will close the account upon the receipt of a death certificate. Once a death certificate is received by the creditor along with a letter explaining that there is no estate, creditors usually forgive the debt, close the account and write it off. In the case of a persistent creditor, an estate may need to be filed even if there is no estate in order to satisfy the creditor that the debtor has died and there is no estate.

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Credit and Debit Cards
Debt Responsibility
Credit

What happens if a person dies and has a lot of credit card debt?

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 will 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.

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Estates
Probate
Debt Responsibility

How long after someone dies can bill collector demand money from an Estate in Ohio?

See the related section from the Ohio Probate Code:

(B) Except as provided in section 2117.061 of the Revised Code, all claims shall be presented within six months after the death of the decedent, whether or not the estate is released from administration or an executor or administrator is appointed during that six-month period. Every claim presented shall set forth the claimant's address.

(C) Except as provided in section 2117.061 of the Revised Code, a claim that is not presented within six months after the death of the decedent shall be forever barred as to all parties, including, but not limited to, devisees, legatees, and distributees. No payment shall be made on the claim and no action shall be maintained on the claim, except as otherwise provided in sections 2117.37 to2117.42 of the Revised Code with reference to contingent claims.

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Estates
Probate
Debt Responsibility

What are an heir's rights regarding the actions of an executor?

Executors and Heirs' RightsIf you do not agree with the executor, you may wish to hire an attorney to act on your or your families behalf. Heirs do have rights, but, as with most issues, heirs need guidance from someone. Attorneys are educated in all aspects of the law. Most specialize in something, be it Estates, Divorce, Accidents, Wrongful Death, etc.

More input from FAQ Farmers:

  • I would contact the probate court in the town your parent lived in, verify with them that it is the correct probate court and then see if the will has been probated. Sometimes small estates don't need to be probated, however they can be. See if you can petition the probate court to prove the will. The court will order that anyone having knowledge of a will, to produce it for the court. If that doesn't work, then your parent died intestate. The probate court can tell you what to do nonetheless.
  • Options available: (1) ask for special request of notice. (2) ask that the trustee be bonded. (3) verify the deed of trust (house) title of car. (4) show proof to the bank; look for unusual payouts. (5) try to get copy of credit report. DO NOT believe what you hear from a trustee.
  • An executor of a will has fiduciary duties under the common law, to act within the parameters of the testamentary document - to the letter! - and to do so always safeguarding each and every interest therein delineated. This means that not a dang thing can be changed, or withheld, or used to benefit ANYONE in ANY WAY (ESPECIALLY NOT THE THE EXECUTOR HERSELF!) without flat out breaking the law. If an executor pulls stuff, immediately the party wronged files suit civily for breach of the executory duties and pleads for immediate removal of the executor for this breach, alleges damages (whatever they might be), and asks the court to act quickly to appoint an interim executor (an uninterested, unbiased individual of the court's choosing who has experience in this sort of thing - usually a lawyer or big banker type) who will take the reins while the aggrieved party litigates the issue of the wrongdoing. Now, the judge may say, hey, I don't see anything untoward here, you have not shown me enough evidence in your plea to me that this executor did anything wrong, and could refuse to remove her. Generally, though, in a case like this, it's so obvious that the accused executor really did act wrongfully - why else would there be an appeal to the judge like this, and the whole will/trust/whatever will be be placed in the independently appointed trustee's hand until it is sorted out. I wish I could describe some of the wild, seminal lawsuits we all read in law school about this stuff- it can get very nasty indeed - he said, she said, etc. But the key thing is that the will or trust, assuming it is valid (a whole other story) reigns supreme, and there is no way an executor can fiddle with it.
196197198
Civil Lawsuits
Probate
Debt Responsibility

If someone suing you is not willing to provide any documentation to back up their claims how likely is it they will win their case?

All plaintiffs have to prove their case to the satisfaction of the judge or jury. When someone is sued for a debt,information concerning the collection of the debt will already have been offered to the defendent. It would be in the form of a letter informing the debtor they have 30 days to request validation. They do not have to impart any other information until they appear in court. In cases of creditor suits they would not go to court without substantial proof.

In nearly every lawsuit other than small claims, you are entitled to conduct discovery. This can include depositions, submitting written questions that must be answered under oath and inspection of documents. If the opposing party refuses to produce the evidence, then you can bring a motion to compel and possibly sanctins. If some cases, refusal to obey the court's orders can result in dismissal of the case or issue sanctions.

221222223
Narcissism
Debt Collection
Income Garnishment
Debt Responsibility

Can you be responsible for your spouse's narcissism?

The short answer is no. Narcissism is not caused in adulthood. There is nothing one adult can do to another adult that will cause something as serious as narcissism. The adult psyche is far too well established and functional to be destroyed in the way one with narcissism has their psych destroyed. For proof just look at all the survivors of the Jewish concentration camps. If any amount of mistreatment could cause narcissism it would surely show up there.

183184185
Mortgages
Estates
Debt Responsibility

Are the surviving adult children responsible for paying off the debts of the deceased - including a mortgage - when there is no estate?

The children are not personally responsible. The property will have to be sold. This allows the mortgage to be cleared and the debts paid before the family will get anything.

141142143
Loans
Mortgages
Home Equity and Refinancing
Debt Responsibility
Money Management

Can your spouse assume your deceased parent's mortgage?

If your spouse has a good credit record that lender should approve. However, you will need to discuss it with the lender.

173174175
Credit and Debit Cards
Debt Collection
Probate
Debt Responsibility

Is the survivor of a deceased person obligated to pay off any debts that are solely in the name of the deceased?

No, not unless you are otherwise liable for the debt. Surviving a decedent has nothing to do with liability. However, if you had an obligation to support the decedent, you may be liable for that person's "necessaries." If you are the decedent's surviving spouse in a community property state, your half of the community property might be liable for the debt, but you, personally, would not be liable. The person's estate (if any) would be used to pay creditors in a specific order, but that assumes the creditor will take the steps necessary to enforce the debt.

EDIT TO ABOVE: Depending on your state, the surviving spouse may be liable for a decedent's debt, even if it was in the decedent's name alone. It really depends on the laws of your state. However, state laws may also place a limit on the liability of the surviving spouse.

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Debt Collection
Debt Responsibility
Income Taxes

Are adult children responsible for tax arrearages of a deceased parent who had no estate?

Tax Responsibility for Deceased Parents

It could depend on what kind of taxes. If it's US Federal or state income tax, only the person(s) signing the return are liable. If it is property taxes, the house will be sold at auction after it is seized by the tax collector. The IRS/State can take the filer's property, real or personal to be sold for back taxes.

More input from FAQ Farmers:

  • In most cases no, because they were not the childrens' taxes, now if there is anything "left" to the children, it may be taken by the IRS or other agency and auctioned off until the debt is paid. Usually they will give the executor of the estate a time frame (sometimes 90 days) to sell off any assests of the deceased and submit payment, after this time is up they come in and auction it for themselves. If there is "nothing left" in possession of the deceased it usually won't fall to the childrens' responsibility unless they possess some of the deceased money or possessions.
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Debt Responsibility

If a spouse dies and has a loan out with the bank is the surviving partner responsible for the debt?

Only if the couple reside in a community property state and that is where the financial transaction took place.

142143144
Estates
Probate
Debt Responsibility

What is a proof of claim filed in an estate?

A proof of claim is filed by a creditor of the decedent. That claim must be paid before any assets are distributed to the heirs. A Proof of Claim is a form that a creditor submits to the court to get paid.

129130131
Estates
Probate
Debt Responsibility

What action can be taken if a named executor of an estate will not perform his duties?

You can petition the probate court to replace them. If the executor is another family member, they may appoint an attorney or bank to serve as executor.

109110111
Credit and Debit Cards
Co-signing
Debt Responsibility

How do you countersue a credit card company for harassment if they are sueing you for nonpayment as a co-signer of the contract?

The question is do you have valid grounds to win a lawsuit? The charge of harassment is very subjective. The FDCPA does not apply to original creditors. The majority however adhere to the regulations because it is good business practice. If you sue and lose, you end up with more expense added to the original debt. Be that as it may, you can contact and attorney who specializes in creditor and debtor issues. Most offer free consultation or at a minimal fee. Or you can contact the clerk of the circuit/civil court of jurisdiction for procedural information.

899091
Parenting and Children
Debt Responsibility

Are children responsible for their parent's debts when the parent dies even if you are estranged and haven't been in contact for many years?

No you are not responsible, but if your parent(s) left a Will and you are named Executor (male) Executrix (female) or someone else is and you are heirs in the Will (highly possible) then the Estate of your parent(s) meaning house, property, summer homes, monies, stocks/bonds, savings in banks, etc., will have to go to Probate. Probate makes sure that all taxes on any property are paid and all out-standing debts are paid first. What is left is divided according to the wishes of your parent(s) in the Will. It take approx. 1 year (or less) to Probate a Will. If you are named Executor/Executrix you will be informed, and if you are an heir in the Will you are entitled to a copy of the Will. Don't count on the fact that you were estranged from your parents and you're not in the Will because they can do odd things for their kids. My mother and I were estranged due to her having Dementia, but I was left money in her Will although she told me I would never see a cent. If in doubt, always see a lawyer to be sure you are in the Will as an heir and if not and you feel you are entitled to your share then you can "contest the Will" which can hold up the Will for 3 years or more depending on the amount of monies or properties (including business') left behind. If you have greedy siblings or relatives they really don't want to go down that road of contesting a Will ... they want their money now! They would be more than willing to settle with you. It's worth seeing a lawyer to be sure what you are entitled too. Hope things work out for you. Marcy

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Debt Collection
Estates
Debt Responsibility
Medical Billing and Coding

In Illinois is the surving spouse responsible for medical bills if their is no estate?

The base assumption is always going to be that that the other spouse inherits the other's assets. But the estate has to liquidate all assets before they can transfer them to the spouse. One way or another, the spouse ends up paying the debt. The spouse has some right in all real property owned by the husband. If the assets are not enough to cover the debt, the real property may have a lien placed against it to cover those debts.

99100101
Law & Legal Issues
Civil Lawsuits
Debt Responsibility

Do you need a lawyer to file for an ex parte hearing?



Definition: (ex par-tay, but popularly, ex party) adj. Latin meaning "for one party," referring to motions, hearings or orders granted on the request of and for the benefit of one party only. This is an exception to the basic rule of court procedure that both parties must be present at any argument before a judge, and to the otherwise strict rule that an attorney may not notify a judge without previously notifying the opposition. Ex parte matters are usually temporary orders (like a restraining order or temporary custody) pending a formal hearing or an emergency request for a continuance. Most jurisdictions require at least a diligent attempt to contact the other party's lawyer of the time and place of any ex parte hearing. * The judge decides whether or not a hearing is held ex parte, not the individuals involved in the matter. As noted, it generally involvedsRO/PO's where the order is granted, without the alledged offender being present. The alledged offender must be notified that a TRO has been issued before the order is considered valid. It is not necessary to obtain an attorney to file a restraining order a no contact order or a protective order, all similar actions regulated by the laws of the state in which the complainant resides.

939495
Debt Collection
Debt Responsibility

What form must a personal guarantee take does it have to be in written form or will a promise made orally suffice?

A " P G " must be in written form... and notorized in order for it to be valid for a debtor to collect against...

939495
Credit and Debit Cards
Estates
Debt Responsibility

Does the administrator have to pay an heir's debts before the estate is settled?

A creditor might be able to assert some sort of claim to the portion of the estate going to the heir if the Administrator is served with notice of a judgment. Remember, the Administrator is wholly responsible for every dime spent and is also accountable for their actions regarding paying debts.

919293
Credit and Debit Cards
Medical Insurance
Debt Responsibility
Medical Billing and Coding

Who is responsible for an ex using the medical coverage of the other spouse after the divorce?

Once the divorce is final - the non-working spouse is no longer eligible for coverage. Claims would be denied. The ex would be elibible for COBRA though. For more details see http://www.steveshorr.com/dependent.definitions.htm www.steveshorr.com/cobra.htm

919293
Estates
Debt Responsibility
Siblings

If the sibling who is named as executor by a parent refuses to perform the duties of executor how can other siblings have access to family memorabilia and documents?

Answer

Executor (male), Executrix (female) has the right to refuse this duty. It is best to seek legal counsel and one of you can take over the duty. It is best when making up your own Wills that you name more than one person as either Executor or Exectrix (or both.) In some cases, and depending on what State you live in this Estate can go to a "Trustee" and they will deal with it and you have the right to have a copy of the Will and be contacted if there are any problems with the Will. After Probate and all creditors and taxes are paid (can take up to one year) then the person "Trustee" can gather the heirs in the Will and distribute the money.

909192
Taxes and Tax Preparation
Estates
Debt Responsibility

Did the third estate pay taxes?

royal taxes fuedal dues work taxes and two more that im not sure of

899091
Credit and Debit Cards
Debt Responsibility
Credit

Mother has passed she was on a fixed income She had a credit card from a Dept Store Who is liable for this account?

If your mother had a Will and owned a house or property (even a car) then this is considered an Estate and would have to go into Probate. Probate makes sure all creditors, taxes, etc., are paid before any monies or property is distributed to an heir or heirs.

828384
Credit and Debit Cards
Debt Responsibility
Credit

Is the suriving spouse responsible for her husband's credit card debt?

If the couple resided in a community property state at the time of the account holder's death the surviving spouse is responsible for repayment of the debt owed. If the couple did not reside in a CP state the debt will be included in probate procedure and handled according to the state's laws of distribution of an estate.

798081
Health
Debt Responsibility
Medical Billing and Coding

Is the estate responsible for medical bills after death of the person?

Yes. The estate is responsible for all debts, including medical bills.

798081

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