Family Credit Card Debt

Please serious replies only and don't tell me that I should not have done this because you would be preaching to the choir. I know that I should not have loaned my credit card to a family member but I did and now I need a solution. This family member was opening a business so I thought that when he promised to pay me back over 20K within a year he would do it. However, he has not and now I want to know if I can sue or am I screwed??

There is nothing that prevents you from suing. The documentation you may prevent you from winning your case. If you can show that the family member (or their business) benefited from the charges you would have a case. You should name both the person and the business in your suit. This way you may be able to make a claim against the business assets or earnings.

2008-07-15 06:59:28 by Tek

Meet a man with firsthand knowledge of how to get out of credit card debt.

This is in Australia - so Australian laws. My mother was the eficiary - will she have to pay these debts.

I'm in Australia. As far as I'm aware the estate of the deceased person is required to pay the outstanding debts. So your mother, as beneficiary, is required to pay the debts out of the money that was left to her, rather than out of her own money. If there is insufficient money in the estate, then it will not be necessary for her to make up the shortfall.

2006-11-04 14:23:43 by Cowell

Price: $32.95

Just wondering what happens when credit card debt gets out of control with elderly people and they pass away. Who assumes the loss???
I live in Texas.

Credit card debt is not passed on to heirs when a loved one dies, but it can still affect you. When someone dies with debt, credit card companies will first try to collect from the deceased’s estate. If there is not enough money in the estate, heirs may have to sell assets from the estate in order to cover the liabilities.

So, even though the heirs are not directly responsible for the debt, they may have to sell assets they were expecting to keep in order to repay the deceased’s financial obligations.

If, after assets are sold, there still is not enough money in the estate to cover the remaining debt, the company that issued the credit card will write off the debt. Usually, a death certificate is required as proof. Family members are not legally liable for any debt.

Be careful, however, if you are a joint account holder on a credit card. If you have a card in common with someone, you are responsible for the debt on that account if the other account holder dies.

2007-01-05 10:17:45 by tx30323@sbcglobal.net

Price: $39.96

I'm in process of starting an organization to help middle class families get out from under their large amount of credit card debt instead of waiting for the government to help or credit card companies to help. Would you be willing to make a donation to selected families in the PayitForward method to help reduce the large amount of credit card debt?

Our prez elect will help them in Jan or Feb?

2008-12-15 10:17:06 by TReilly73

My Father has passed and his only CC had about $20000 of debt on it. Myself and his wife had use of card but never signed agreement as liable. Can CC collect from them or estate? His estate is a living will trust acct. that I inherit, but is not declared mine until I withdraw the money. Is it protected from CC collections?

If you were only an authorized user on the card, and not an account holder, then you are not liable for the debt personally.

However, his estate must pay all debts before any inheritance can pass on to the heirs. So indirectly, you will pay the $20k because the estate will be worth $20k less by the time it passes to you.

If his entire estate is worth less than $20k, then the debt must be paid as much as possible, the remaining balance should be canceled and you aren't liable for it, but you won't inherit anything.

When you die, what you own must stand good for what you owe, including both secured AND unsecured debts. Make sure you consult an attorney throughout the process to make sure everything is done within the law. If you improperly disperse funds from the estate to an heir, it could make the heir liable for the debt.

2009-06-18 09:39:12 by Cecilia