The last thing a bereaved family member wants is to get a call from a debt collector demanding money for a deceased loved one. Here’s what you should know about the laws and your rights if a collector calls you regarding the debts of a deceased relative.
Losing a loved one is never easy, and dealing with their financial affairs can add to the emotional burden. One question that often arises is: am I responsible for my mother’s credit card debt when she dies?
The answer, thankfully, is usually no. In most cases, you are not personally liable for your mother’s debts, including credit card debt, after her passing. However, there are a few exceptions to this rule, so it’s important to understand the nuances involved.
Here’s a breakdown of what you need to know:
Generally, you are not responsible for your mother’s credit card debt. When someone passes away, their estate is responsible for settling their debts. This includes any outstanding credit card balances. If there is enough money in the estate to cover these debts, the creditors will be paid. However, if there isn’t enough money, the creditors may be out of luck.
There are a few exceptions to this rule:
- Co-signing a credit card account: If you co-signed a credit card account with your mother, you are jointly responsible for the debt. This means that the creditor can come after you for the full amount of the debt, even if your mother is deceased.
- Joint credit card account: If you had a joint credit card account with your mother, you are also responsible for the debt. This is because both of you are legally obligated to pay the balance.
- Community property states: In community property states, such as Arizona, California, and Texas, debts incurred during the marriage are considered community property and are the responsibility of both spouses. This means that if your mother died and you are the surviving spouse, you may be responsible for her credit card debt, even if you didn’t co-sign for the account.
- State laws requiring payment for certain debts: In some states, there are laws that require surviving family members to pay for certain debts of the deceased, such as medical bills or funeral expenses. If your mother had credit card debt that was used to pay for these expenses, you may be responsible for paying it off, depending on the specific laws of your state.
If you are unsure whether you are responsible for your mother’s credit card debt, it is best to consult with an attorney. They can help you understand the laws in your state and determine your legal obligations.
Here are some additional things to keep in mind:
- Credit card companies may still contact you about the debt. Even if you are not legally responsible for the debt, credit card companies may still contact you after your mother’s death. They are allowed to do this under the Fair Debt Collection Practices Act (FDCPA). However, they cannot harass you or mislead you about your obligations.
- You can ask the credit card company to stop contacting you. If you are being contacted by a credit card company about your mother’s debt, you can ask them to stop contacting you. You can do this by sending them a written letter or by calling them and speaking to a representative.
- You can also dispute the debt. If you believe that the debt is not valid or that you are not responsible for it, you can dispute it with the credit card company. You can do this by sending them a written letter explaining why you believe the debt is not valid.
Dealing with the financial affairs of a deceased loved one can be a complex and emotional process. It is important to understand your legal obligations and to seek professional help if needed. By doing so, you can ensure that your mother’s debts are handled fairly and that you are not held responsible for debts that you are not legally obligated to pay.
Who is responsible for a deceased person’s debts?
As a rule, a person’s debts do not go away when they die. Those debts are owed by and paid from the deceased person’s estate. Family members are generally exempt from having to use their own funds to settle a deceased relative’s debts under the law. If there isn’t enough money in the estate to cover the debt, it usually goes unpaid. But there are exceptions to this rule. You may be personally responsible for the debt if you.
- cosigned the obligation, like a car loan
- are the surviving spouse of the deceased and reside in a state with community property, like California
- are the spouse of the deceased and you reside in a state where you must pay certain debts, such as some medical bills
- were in charge of handling the estate legally, but they disregarded some state probate laws.
See a lawyer if you have any concerns about whether it’s legal for you to use your own funds to settle the debts of a deceased person. Depending on your income, you may qualify for free legal services from a legal aid organization near you.
Can a debt collector contact me to get information about a deceased person’s representatives?
In order to obtain the contact details of the deceased person’s representatives, collectors may speak with family members or other individuals who are connected to the deceased but lack the authority to settle estate debts. Name, address, and phone number of the departed person’s spouse, executor, administrator, personal representative, or other person authorized to act on behalf of the deceased person’s estate are all included in this contact information. It is typically not possible for collectors to discuss the specifics of the debt with these individuals; they are only permitted to reach out to them once.
Re-contact is an option for collectors seeking updated data or information that was provided incorrectly or incompletely by a relative or other source. But collectors still can’t discuss the debt.
WHO IS RESPONSIBLE FOR A DECEASED PERSON’S DEBT?
FAQ
Do I have to pay my deceased mother’s credit card debt?
Do you inherit your parents credit card debt?
Do I inherit my mom’s debt if she died?
Can creditors go after beneficiaries?
Can relatives pay off credit card debt after death?
Relatives typically aren’t responsible for using their own money to pay off credit card debt after death. But they may be on the hook in some cases, like if they had a joint account with the deceased person or are a surviving spouse in a community-property state.
Who is responsible for credit card debt after a relative’s death?
Although you’re generally not responsible for paying credit card debt after a relative or loved one’s death, there are some exceptions, including the following circumstances: You co-signed a credit card account with the deceased person. In this case, you would be responsible only for the debt on that particular card.
What happens to credit card debt when a mother dies?
If a mother passes away and leaves credit card debt behind, then there are several different ways that the debt could be taken care of. The first entity that would be considered responsible for the mother’s credit card debt would be the estate created by the probate court upon her death.
Who is responsible for my mother’s credit card debt?
The first entity that would be considered responsible for the mother’s credit card debt would be the estate created by the probate court upon her death. Before distributing any assets to beneficiaries, the probate court would instruct the estate administrator to pay all debts.