Wednesday, August 5, 2009
Do dredit card debts die when person dies?
Answers:
no, they, along with all outstanding debts, are payable out of the decedent's estate if there cash or assets left upon death from which to pay them, prior to any distribution to the heirs of what remains. if there is not enough in the estate to settle all debts, the creditors share in the estate proportionately, and whatever debt remains is extinguished and is not the responsibility of those who would have been the decedent's heirs.
No. The credit card debts die when the statute of limitations runs out, or usually within a short time after a person dies, like 2 years. Then its just final.
Death is the ultimate form of personal bankruptcy.
No, they are passed on to next of kin. Otherwise, i bet you'd see a lot more old people at casinos and strip clubs.
No. Your estate will owe the bill, unless your estate is insolvent (no money), then the debt is written off.
The debt is claimed through the estate of the deceased, eg: wife or relatives.
no your debt gets pushed of to your estate/beneficiaries which means if you die and you owe your family gets screwed in the process.
No they become creditors to your estate. If you leave nothing though they cannot get at it can they!
The debt gets resolved through probate court.
Nope. They will follow the estate, whatever it is. I don't think they get to hit your heirs up for more than they inherited, if your debt amounts to more than your assets when you die. But they will take your assets. They're entitled. You promised to pay them.
Not in theory, they still have a claim against the estate of the deceased. It also depends on whether the customer had insurance cover on death for the debts.
Credit cards are generally unsecured debt. The credit card company will try to collect from the heirs, but there is no obligation on their part to repay. If the debt is large, the credit card company may try to collect from the estate and then the executor would have an obligation to pay the debt -- but that does not mean it HAS to be paid. It's unsecured, so if your estate defaults on the debt what's the credit card company going to do? Report a dead guy to a collection agency and raise the dead guy's credit score?!?!
Do assets die?
it depends some places have a protect policy where it just disappears.if they don't then it gets passed on to the next of kin.
No credit or debit cards can still be used till the company is notified that the person has died so it is important for the estate to know what cards or there since all charges will be valid.
Sort of.
If their is money in the estate, a house or other monies, debts must be paid first.
If the card was in joint names, the second person will become responsible even if the purchases were the deceased.
If there is no money in the estate, then yes. However family are often contacted to see if they are willing to pay.
No debts die with you, however there is insurance you can take out as you can for critical illness on your credit cards. The family/spouse does not lose anything, they can only inherit what is left AFTER all debts are settled, they may feel that somehow they are 'paying' but they aren't.
Any money owed will be payable from this persons estate if there is enough in the estate to cover the bill after funeral expense. If the person leaves you all the money and estate then you are liable to pay this debt from the estate. Most debts can be recovered from the estate of the deceased but even then there is a pecking order, funeral gets first call on estate.
No. The credit card company has a claim on the value of the deceased estate. It would have to be paid before the executors distributed the rest of the assets.
Having been in busines for many years I have experienced debtors passing away leaving me unpaid.
Strictly speaking the debt goes to the estate, invariably a solicitor is involved, and they make sure the debt is not paid if they can help it.
By law, when someone dies, a notice is placed in the newspaper asking for anyone who may think that they're a creditor to send in their claim to the Solicitors of the deceased's estate. The credit card company would be classed as a creditor.
When monies are distributed to creditors, money goes to preferential creditors first (Tax man) then the Solicitors bill, then the other creditors and any money left to relatives (as per the will).
Sometimes, a policy may clear certain loans etc... but these would have been checked out by the Solicitor.
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