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Debt Responsibility
Questions relating to the responsibilities for debts left by an individual that has died.
1,506 Questions
How to negotiate a lower pay off of credit card debt?
Not likely to happen ... you may get them to lower the interest rate some, but to forgive any of the principal amount, money you have already used to buy something that you could not afford in the first place, that will still have to be repaid in full.
This answer is inaccurate to say the least. You will have to stop making your monthly payments and the closer you get to 180 days past due, the more negotiating power you have. You should have extenuating circumstances and communicate those to the creditors. Expect to pay between 30 and 60 cents on the dollar.
Can the executrix of an estate dissolve the estate without the consent of the beneficiaries?
Certainly, as long as the court accepts the disposition of the property and the settlement of debts. Consult a probate attorney in the state in question.
What is the first steps to carry out a last will and testament?
Obtain letters of authority for the executor. The most important is to make sure that the assets are maintained and not allowed to be stolen or damaged.
Are heirs responsible for deceased parents mortgage debt?
No, the executor is responsible to insure the estate is taken care of. Them means either selling the house or paying off the mortgage. One way or another the debts have to be resolved before the estate is closed.
What happens to a tax debt when taxpayer dies?
The estate has to pay off all the debts including taxes due. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.
Letter of direction for estate?
The Letter of Direction is often required when a person has passed away and the Power of Attorney must make certain decisions on behalf of the deceased.
The Letter of Direction can take various forms, and generally the estate lawyer can help you with the wording required.
The Power of Attorney (POA) becomes the Administrator when someone dies and the finances of the deceased are generaly frozen in an estate account held by the lawyer untl the Letters Probate are released by the court. If the account requires a Letter of Probate (because it is a large amount of investment and property) (most of the time these are needed), then the Administrator will have to wait till this clears the legal system and the lawyer notifies you that the Letter Probate is available. Let
Often the Lawyer will make themselves available to handle most of the affairs, but a good Administrator who is careful and responsible can do much of the necessary paperwork, with suggestions from their lawyer (and save a few dollars for the estate in the process).
In order to settle an estate account, the administrator should send in:
1) Notarized copy of the Letters Probate (contact the lawyer who did this for the estate) along with
2) Write a Letter of Direction signed by the Administrator(s) with signature(s) guaranteed.
- this will simply be titled Letter of Direction for the Estate of Joe Blow
- the address to whom the letter is directed
- include investment numbers, account numbers, the dollar amount
- who the cheque(s) should be payable to (i.e. cheque should be payable to the Estate of Joe Blow
- Address of where the cheque should be sent (usually the administrator's address would where the cheque can be sent) (if the lawyer handles it, and has the appropriate authorization, the lawyer can send the Notarized copy of the Letters Probate, and then the trust company will/can contact the Administrator (former Power of Attorney).
- Make a line for the Administrator to sign _______________
- Make a line for the guaranteed signature (bank
- Sign in the presence of guarantor (bank, financial organization, or lawyer)
3) Write up a Cover letter with the contact name and phone number and address of the estate's Executor/Administrator, and what you are attaching (Notarized Letters Probate and Letter of Direction, and any other attachments that may be needed)
4) It is also helpful to send a copy to the lawyer for the estate record.
There are various ways of writing Letters of Direction, but the most important thing is that the person who is the Executor should write up the document, and sign it in the presence of a qualified guarantor (bank, notary, etc.) as they are the official legal contact of the estate.
An Executor must be trustworthy and able to handle the affairs in a prompt and careful manner.
If a debt collector puts a lien on your house does that mean your mortgage co forecloses your house?
It does not follow. The lien of the debt collector comes after the mortgage loan. Which means that the debt collector still may not be able to collect any money.
If a husband dies will a wife be responsible for the mortgage debt even if she is not on the note?
His estate will be responsible for the mortgage. Assuming the wife is not on the deed, if the mortgage isn't paid the bank will foreclose and take possession of the property covered by the mortgage. If the wife is on the deed and she consented to the mortgage the bank can foreclose. If she is on the deed and did not consent to the mortgage then the bank had a defective title and may not be able to foreclose.
Can i find out who a dead person owes money to?
If they're dead they don't owe anything to anyone. If it was you, apparently you missed your opportunity to collect while they were still alive. Other than that, you need to keep in mind that impersonating someone to collect money not rightfully yours is theft and can be prosecuted in a court of law.
Though if someone was legally in debt to you, being related to the deceased, you could take them to court and their obligation would still stand.
If the estate has not been settled and the deceased owes you money you can file a claim with the estate. I am not a lawyer, but was an administrator for my mother's estate. Regardless of what the law might be, the right thing to do is to pay off all the debts before passing out money to the heirs.
What is an executor to a will?
They are the person responsible for the estate. They have a fiduciary duty to preserve the value of the estate. A complete inventory and valuation of the assets must be completed. They must resolve debts and bills and pay all taxes due. Then they distribute the remainder according to the will or laws of intestacy. A full accounting must be provided to the court.
Who is responsible for credit card debt if your spouse dies and the credit card is in his name only?
It all depends on what state you live in. Contact the credit card companies they can tell you
Can a nursing home take your home?
In most places the nursing home would first need to take you to court to receive a judgement allowing them to take your home in partial payment for the cost of nursing home services. If they are in the process of doing that, you need to see a lawyer.
As far as I know, in Texas, a person's home cannot be taken to pay a commercial debt. However, medicade requires a person going into a nursing home sell all their property, including their home and pay the nursing home costs out of their estate until all that remains is something like $2000 before medicade will begin covering nursing home expenses.
It is a Letter of Authority. It is issued by the probate court to the executor of the estate. Opening an estate is done by filing the appropriate forms with the court.
Who is responsible for hospital bills after death of spouse in Michigan?
The estate of the deceased is responsible for paying off the debts. Since the estate is usually going to go to the spouse, it reduces the amount the spouse will inherit.
Is a nephew responsible for a dead aunt's medical bills?
The nephew is not personally responsible. If he is the executor, he has the responsibility to resolve the debts. If the assets are not adequate to resolve them, they have to be written off.
Is the suriving spouse responsible for her husband's car loan if she is not on the loan?
I live in Illinois and when my spouse passed away 7/31/08 I was not responsible. I just called them showed them the death certificate and had them pick it up.
Can creditors put a lien on a house that is in a life estate?
Yes, they can place a lien on real estate. That may mean they get nothing if the individual dies, because they can only lien on the rights of that individual.
Am I liable for my husband's credit card debt?
Hello i have asked this of many people and the answer i got back was yes what ever debt your husband has whether it is in just his name or joint names you are both liable for it. If like my husband its alot and you didnt know about it until it all went wrong then it sucks!!
Are bank debts written off after death?
In most cases the debts of the deceased are the responsibility of the estate. They have to be paid off before any one else gets money. Anyone that was also a co-signer on any of the agreements might also be responsible. Consult a probate attorney in your jurisdiction for help.
Yes, the executor of the estate can make decisions such as this. it is usually best to talk it through if you are on good terms with your sibling.
