Debt Responsibility

If this debt is from a loan or credit card they obtained while under age 18 the lending institution is at fault for granting the credit. If the debt is owed by a parent then you still owe it.

They would put it on the entire estate of the deceased rather than one item of property so that if there was money that couyld be used to pay rather than have to sell the house.

Any asset which has his signature on it. The house, the car, any large item that he purchased (with or without you) is part of his estate. State probate laws determine what is exempt and what is not when it pertains to any estate. If the married couple lived in a community property state all property acquired during the marriage is equally owned regardless of title wording. If the married couple did not reside in a CP state probate laws take precedence with the default laws applying if the person died intestate.

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

Some people have an Executor (male) or Executrix (female) in their Will to take care of these duties. Other people have "Trust companies" that will do it as well for a fee. Both parties have to probate the Will to be sure all debts including property and personal taxes off and the residue that is left after that is the total amount of the Estate. Marcy

The executor is responsible for collecting all debts owed to the estate. If the deceased did not write such intentions down it must be assumed that the debt is still owed. If the Executor is the one making false claims, other benificiaries may want to consult with a lawyer, especially if the estate is substantial.

It depends on that person's will. Any inheritance may go to their family. The state's probate succession laws determine what should be done with the deceased's share of the inheritance.

Hi Mackey Nice to see you around and thanks for adding on the extra info. Have a great weekend! Marcy No, only the surviving mate would be responsible. Parents debts are not their children's debts and vice-versa. If your parent owned a car and owed some debts the car would be sold to pay as many as the debts as possible, but other than that the IRS and creditors are going to have to write-off those debts. Marcy In addition, all states have probate laws which determine what assets belonging to the deceased(s) are to be used to repay debts. All assets and debts are audited and filed in the probate court of jurisdiction by the appointed executor or executrix. Creditors are notified that they have a specified amount time to file a claim (generally 6 months) against the deceased's estate. All debts must be paid according to there priority and to the extent of the non-exempt assets that can be used for repayment. No property or assets will be distributed to surviving family members until this has been done. When a person dies intestate, the state probate succession laws apply to the distribution of assets and/or real property that remains after debts have been satisfied. The same laws apply when there is a will, all nonexempt assets must be used to repay debts owed by the deceased before any inheritance is distributed to named beneficiaries.

If the surviving spouse was not an account holder then he or she is not responsible for repayment of the debt. FYI, authorized users are likewise not legally responsible for credit card debt as it is assumed the AU has no control over how the account is handled.

The answer to your question if you have over 500 accounts that are past due is to purchase an enterprise level software that allows you to report to the credit bureaus using a metro 2 format that the bureaus accept files in. The 500 account minimum is imposed by the credit bureaus and you would need to contact Experian, Trans Union, and/or Equifax; set up an agreement to furnish data with them, and update your accounts on a monthly basis. There are several sets of laws governing the reporting of accounts to the credit bureaus including the Fair and accurate credit transactions act (FACTA) and the Fair Credit Reporting Act (FCRA) that you should be familiar with prior to doing so.

Yes they can. When the person is deceased their estate goes to the Executor (male) or Executrix (female) and they make sure all personal/property taxes and creditors are paid off. You can go into any book store and get a "Probate Book" or even go on the internet and get the forms. Of course when you take the Probate forms in they almost always fail you the first time (cash cow method) but, be patient, the second time around you'll get through OK. It can take 8 months to a year for the Probate to go through. The Executor/Executrix can pay electric bills, phone bills, etc. (every monthly bill), but the bulk of the Estate has to go to probate. If the debt is worth more than the total Estate then the creditors are out of luck! Marcy

His estate. If he had any resources, they should be sold to pay his debts. After the debts are paid, if there is anything left, it can go to the beneficiaries. If your mother is not living or married to your father, then his debt must be written off by the creditors. Simply send them a copy of his death certificate. If he used collateral when he aquirred a loan, then the collateral will be taken away. Example: If he had a car which he owned free and clear and needed a loan from the bank, he could have given them the title as collateral to get the loan. If the loan defaults, then the bank takes the car. Mortgages work the same way. * All debts and non exempt assets are subject to probate procedure. It is not necessary to send a copy of a death certificate to creditors. The executor or executrix of the estate is responsible for notifying all creditors of the death to allow them to place a claim against the deceased's estate. If there is a surviving spouse and the married couple resided in a community property state, the spouse is usually responsible for the deceased spouse's debts regardless of whether or not the debt is joint. ** Answer ** It may help to think of it like this: Death completes one's life as a mortal being. Some believe you will then become subject to an accounting of how that life was led. However, for business purposes you are still alive until the estate/probate accountings mentioned are completed. It is during this accounting time that the business/financial affairs are resolved. Part of settling these is that anything that isn't needed to directly settle your promises is redistributed according to a Will or Laws of Intestacy for that state.

All assets and debts of the deceased are paid and distributed under the probate laws of the state. If the deceased left an estate that does not contain any nonexempt assets, the debts will become null and void. It is the responsibility of the executor or executrix of a deceased's estate to notify creditors to prevent litigation procedures from being implemented. Once notified that the deceased's estate has been entered into probate. creditors have a time specified by state law to file a claim. If the person died intestate, state probate succession law (sometimes referred to as Universal law) will apply. In this situation, the deceased's debts are not the responsibility of surviving family members, however no assets or property can be distributed to beneficiaries until all debts have been satisfied in accordance with state probate law.

If the estate has any assets, the estate should pay for the debt before anything is passed on to the heirs. If there are no assets the credit card company will just have to write it off. You are not held responsible unless you co-signed for the card.

The debt you owed to the decedent will become a part of their estate and their heirs can collect as long as they have proof that you owe the money. The heirs can request that an estate representative be appointed and that person can pursue payment from you. The debt does not just go away as long as there is evidence that the money was owed to the decedent.

You may be. Check with an attorney to find out your obligation. You would certainly be responsible for any purchases after the relative died and that might be used as precident to determine if you're responsible for other debt as well.

Yes, you are under the law married couples are considered one unit, that makes you responsible for eachother. * No. Not unless the surviving spouse signed an agreement to do so. The only time spouses are responsible for each others debts is if the debts are incurred jointly or the couple resided in a community property state, Illinois is not a community property state. (Macky)

Probate is the easiest way and the legal way it should go when a Will is left. Probate makes sure that all creditors (banks, charge cards, loans, property taxes and personal taxes, etc.) are paid in full. Whatever is left after the creditors is paid goes to the Heirs in the Will. If there is no money left and debt still owing then the creditors are out of luck and the Heirs are not liable for any monies owing. Marcy

No.

If the house was not properly dealt with during probate as part of your father's estate, you may be found guilty of fraud or deceit. Make sure you know the details of the transfer of the house title. The medical bills may need to be paid as part of the obligations of the estate.

No, if they were not joint debtor's with the deceased they are not responsible for any of his or her debts.

The estate of the deceased to the extent that non exempt assets are available to pay debts owed. Surviving family members are not responsible for the debts of a deceased if they did not hold joint accounts with the person. Nor are they legally responsible for medical bills unless they signed a contract agreeing to do so. Admitting an adult (not a minor) to a hospital or care facility does not confer financial obligation upon the non patient signer. If the admittance documents indicate otherwise the person who presents the forms to be signed must inform the involved parties of that fact before allowing them to sign.