What happens to thier debt when someone dies?
Whenever someone dies and leaves debts behind, a designated person (called an executor or administrator) handles the estate. If the deceased person did not have a will and was married, then, in many states the spouse automatically assumes responsibility for the estate and, becomes responsible for paying off the debts on his or her own. If the deceased person did not have a will and did not have a living spouse, then usually a close relative (son, daughter, mother, father, or a grandparent) is appointed as the executor of the estate according to state law. If there are no relatives, the state appoints an executor. Even when an estate is worthless, the executor must still notify all creditors of the death. Debts from a worthless estate are generally charged off and no future collection actions are taken. However, as stated earlier, in some states a living spouse can still be held responsible for paying off the debts of their deceased spouse. Always check your state laws and always consult with a probate attorney. When the estate is worth something, the debts must be satisfied according to federal and state priority. For instance, debts owed to the federal government take first priority and then state governments debts and after that, it depends on the types of debts and whether or not there is a will. Assuming there is a will, its instructions are followed and then comes secured debts, liens, judgments and finally unsecured debts. Here are two relevant excerpts from federal code... "Section 3466 provides: 'Whenever any person indebted to the United States is insolvent, or whenever the estate of any deceased debtor, in the hands of the executors or administrators, is insufficient to pay all the debts due from the deceased, the debts due to the United States shall be first satisfied; and the priority hereby established shall extend as well to cases in which a debtor, not having sufficient property to pay all his debts, makes a voluntary assignment thereof, or in which the estate and effects of an absconding, concealed, or absent debtor are attached by process of law, as to cases in which an act of bankruptcy is committed.' " "Section 3467 (Comp. St. 6373) provides: 'Every executor, administrator, or assignee, or other person, who pays any debt due by the person or estate from whom or for which he acts, before he satisfies and pays the debts due to the United States from such person or estate, shall become answerable in his own person and estate for the debts so due to [269 U.S. 483, 487] the United States, or for so much thereof as may remain due and unpaid.' "
by Just Me - 12 hours ago
Depends on the state laws where you live. Also depends on if someone else "assumes" the debt. Best line of defense to collectors would be, "I don't know anything about this, did not incur it and cannot pay it." Have them mail you a request for the death certificate and then send it to them once you receive their request in writing. NEVER agree that he owed it, NEVER agree that you "should be" responsible. Collectors have gotten really filthy about guilting people into paying the dead's debts. Sorry about your loss.
by Gem - 12 hours ago
charged to his estate.
by Visualize Whirled Peas - 12 hours ago
It depends upon whether you live in a "community property " or "common law property" State. Here is a website, just read what it says under "debts" in each type of state. http://www.nolo.com/legal-encyclopedia/article-29572.html
by Paraiba Blue - 12 hours ago
Your premise that he had no assets is technically false. If he had a car loan, then he had a car. A car is an asset. The car and any other assets must be sold and the money raised must be used to pay as much of the debt as possible. The remainder of the debt dies with him. You are not obligated to use any of your own money or future earnings to pay the debt unless either (a) you keep any of his assets, including the car, (b) you jointly owed the debt while he was alive, or (c) you cosigned the debt.
by StephenWeinstein - 12 hours ago
THe debts go to one person of his family.
by LOL14 - 12 hours ago
REPLY: TO: The Wife ________________________ Dude I hate Stupid retarted laws like that they put your son or famly in charge of he or her dept WHY CANT THEY FORGIVE AND FORGET _________________ That really sucks for you, I knew a rich guy *muli millionaire and some guy was crying for money cuz he just lost EVERYTHING and (theres more to the story im to lazy to write) Ok Fast Fowerd The rich guy helped him out and got him a house and other stuff i heard, So bacily if you get all his dept ask a local charity or church, or rich guy and I am 100% positive that they will help you out PS Have a relative steal everything in your house and call insureance and they pay for everything and then get all your stuff back That realy works but I know its illeagal but its a good choice
by ? - 12 hours ago
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