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Debt Responsibility
Questions relating to the responsibilities for debts left by an individual that has died.
1,506 Questions
Who is responsible for credit card debt when a person dies in West Virginia?
the deceased' inheiritance
Is the surviving spouse responsible for his deceased wife's debts in New York?
No, New York is not a community property state.
If your deceased father is being sued do you have to pay if his estate is exhausted?
No, but any properties or such things as cars, boats, etc., will be sold and creditors are paid off. These were your father's debts and unless your mother is living then that's the end of it. If you mother is living then she is responsible for the debts and will have to appear in court. You are not responsible unless you have signed as cosigner for a loan or any properties or articles such as a car, motorhome, etc., are in both your names. * In the US a deceased person cannot be sued. The creditor must make a claim against the estate. Debts are paid according to their priority and to the extent of non exempt assets belonging to the debtor. Only surviving spouse's who lived in a community property state at the time of the death of the other spouse are sometimes not always, responsible for debts incurred solely by the deceased. Respond to the law firm filing the suit with the case and docket numbers of the probate filing.
Can a wife be held responsible for debt her husband incurs due to a failed business venture?
No, unless she were a co-owner of the business or a co-borrower of cosigner of loans that were business related. A creditor might try to hold a spouse responsible if the couple reside in a community property state. In such circumstances the non owner spouse might wish to consider using an "innocent spousal defense."
Are you responsible for your spouse's debts?
yes * Only if the couple reside in a community property state and the debt is incurred during the marriage. All CP states allow a spouse to use the "innocent spousal" defense concerning marital debts if the spouse was not aware of the debt made or had no control over the matter. Texas and Wisconsin are not "true" community property states when it relates to marital debts solely incurred. In all other states sole debts belong to the spouse who incurred them.
Is the surviving spouse liable for a deceased spouse's debt in Tennessee?
The estate is responsible for the deceased spouse's debts. But given that the spouse typically inherits the estate, and often agreements are required to include the spouse, there is a possibility, depending upon the type of debt and the instruments they were created under. I would consult a probate attorney. * A spouse is not responsible for the debts of a deceased spouse unless the debts were jointly incurred during the marriage or in some instances the married couple resided in a community property state at the time of death.
The specific reason you want to have an estate is to get things like this taken care of. The estate is responsible for settling the decedent's bills and debts. Without an estate, the creditors will go to the spouse. For your peace of mind and protection, please consult an attorney.
In Minnesota is an adult child responsible for their mother's debts when she dies?
No, not unless you are a joint debtor/account holder.
Who is responsible for debts upon the death of a sole proprietor?
The debts are paid from the estate.
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.
Are children responsible for the debts of their deceased mother in Illinois?
The estate of the deceased is responsible for the debt.
Is an authorized signer responsible for credit card debts if the card-holder dies?
Authorized users are not responsible or liable for debt they have not contractually obligated themselves to pay. This is a sticky point right now. Creditors and credit bureaus are routinely reporting accounts for consumers who are authorized users. This is a violation of the letter of the law, but it may take a class action suit to remedy the practice.
If the question applies to you specifically, write both the original creditor and the credit reporting agencies disputing the account. Request they produce the original contract, with your signature, which proves your liability for this debt. If they are unable to prove your liability, you can request the account be removed from your personal credit report.
If the deceased card-holder left an estate, the estate may be liable for payment of any outstanding debts. Whether or not this is true would depend upon the status of the estate, any will, trusts, inheritance or probate issues. A specific question about inheritance would need to be addressed to an attorney familiar with inheritance liability issues.
Who is responsible for credit card debt if the cardholder dies and was the only authorized user?
The person(s) whose name is on the account is the only one responsible for repayment of debt. With the exception of married couples that live in a community property state. Some creditors will attempt to collect part of or the entire debt from a spouse, family member or authorized user. Those people are not liable for the debt. A few states have laws which might make someone partially liable if it can be proven the card was used for "life necessities", food, shelter, medicine, etc. Such a charge is disputable and is seldom collectible.
If a spouse dies and leaves bills in their name is the surviving spouse responsible for those bills?
If the deceased had unsecured debts in their name only, and the married couple did not reside in a community property state, only he/she is liable for the debt(s). If it is a secured debt in his/her name only the property may be subject to repossession, lien placement, sale, and so on. What action a creditor can take against the estate of a deceased person is governed by the laws of the state of residency.
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, are governed by state law.
If your spouse dies who pays the credit card bill if it was not a joint account?
If the couple lived in a communtiy property state, they are both responsible. Even if only one was the account holder.In rest of the states the person who is the account holder is the only one responsible for the debt. Depending on state law, there could be probate procedures determining assets and debts and how they will be distributed.
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.
That's a question that really needs to be answered by a BK attorney that handles business BK's. The laws governing those type of BK's are different from personal filing. Each state has laws governing business ownership and the financial transactions of that business. They can be very complicated. Who is could be held responsible for the debt(s) depends on how the business is titled and what the business might be. In general, contractors, construction companies, (that type of business) have different BK laws, than do "mom and pop" type stores.
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.
No. Georgia is not a community property state.
If the decedent owned real estate then there is an estate. The estate is responsible for paying debts before any property can be distributed to the heirs. If the assets are not sufficient to pay the debts then the estate is insolvent. There is a statutory order by which debts must be paid in that case.
If the children want to keep the house then they must pay off the mortgage. If not then the bank will take possession of the property by foreclosure. The children are not personally responsible for any debts unless they co-signed or agreed to be responsible.
Are adult children responsible for tax arrearages of a deceased parent who had no estate?
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.
If the lender has written the car off and not repossessed it do you owe them money?
YES
Yes, you owe them money or yes they owe me the title if it has been written off? Thanks for your help.
