Credit Card Debt After Death

An older family member of mine has a large amount of credit card debt and their only major asset is the house that they currently live in. From what I've read it seems that creditors will liquidate all of their assets including the house in order to try and cover the debt upon their death.

One of their children wants to purchase the house or assume the mortgage from them now and become the new owner. If the house is sold/transferred in this manner and no longer belongs to my older family member with the large debt, will creditors try to come after her child upon her death?

The house is located in Florida.

They better transfer the house before the death of this individual because you are right they will come after the estate of the deceased.

If the child purchases the house from them the seller needs to keep the money out of the banking system otherwise that money would now be the asset. But I'm sure you already know that.

Once the person is deceased the only thing the child needs to do is open the letters send a copy of the death cert. (it doesn't have to be certified unless they contact them and ask for one) and also include a note that says Deceased has no estate.

I've never after 2 1/2 yrs had any of my father in laws creditors write me again.

2008-11-17 23:37:54 by extisc

When you die, credit debt can be transferred to a spouse or next of kin depending on state laws. Check the laws on credit card debt being passed ...

Your estate.
All of your stuff is liquidated, creditors are paid off, then anything left is taxed and distibuted to heirs. Feeding frenzy.

2006-09-21 18:12:40 by twinkle

I have been getting 30 and 60 lates on my report and I can't seem to pull out of this cycle of lates now that my rates are so high. My score is in the toilet. Will it be even worse when my report shows that I am on a payment plan, or can this be the first step into repairing my credit?

A payment plan is an excellent idea and will definitely help your credit. As long as you pay on time, your creditors will report to the credit bureau that you are in "good standing". It's in your favor to establish a payment plan, and if you're going to be late with a payment, call the company and ask for an extension.

2007-03-18 14:08:28 by JET

the estate (what happens to the assets and debts of the deceased) is responsible for the payment of debts and distribution of assets.

A creditor can file a claim against the estate requesting repayment, if after the claim period passes there are sufficient assets in the estate (cash or property sold to convert to cash), the creditors will be paid.

If there is more money that creditors, all the creditors are paid in full and what is left over gets paid out to the heirs as stipulated in the will or if there is no will in accordance with the laws of the state.

If there is less money than debt, the creditors are arranged in order:
Priority claims (usually the mortuary)
Tax claims (yup, even death you can't escape the tax man)
secured debt (usually the collateral is repossessed and sold making that debt unsecured)
unsecured debt (credit cards, utility bills and the like)
at that point the money is paid out, in order, until it is all gone.

Please note that unless an heir or survivor is a cosigner or coborrower on and account, in 99% of the situations they are NOT responsible for the debts of the deceased.

2007-12-18 11:26:39 by al m

If I die with credit card debt in Connecticut, will my spouse be responsible for paying them off? even though I'm the only one on the account? could the creditors put a lien on our house?

elizabeth m, I found a nice online list of Connecticut local credit card resources. http://www.howtofindcreditcard.com/Conne cticut-Credit-Cards.html Try calling a local service and they can answer your questions.

2009-02-18 14:28:23 by elizabeth m