What Happens to Debt After Death
Debts typically don’t just disappear after the debtors are deceased, nor are creditors typically inclined to let outstanding balances remain unpaid. At this point, debts are transferred to the estate and paid off in the probate process, at which point the deceased person’s assets and property are put toward paying the remaining balances. The responsibility for selling assets and paying debts falls to the estate executors.
Taking on Parents’ Credit Card Debts
Unless you co-signed on a parent’s credit card, you will not likely be responsible for paying off their credit card debts with your own finances. However, be advised that if you are an authorized user of their credit card, creditors may still come after you to request repayment. Your personal credit score(s) may also suffer if you are an authorized user of your deceased parent’s credit card and their debt remains outstanding after their death.
If your parent’s credit card debt cannot be fully paid off after all their assets and property have been sold, you may have a problem on your hands. It is imperative to protect yourself and talk to an experienced probate lawyer right away if you fear having to take on a parent’s credit card debt.
Estate Planning & Probate Lawyers in Marietta, Georgia
The prospect of inheriting a lot of debt from a parent, grandparent, or other family member is daunting and scary. You may be fearful of the financial strain that debt will place on you and your family—but don’t worry. Our legal team at Busch, Reed, Jones & Leeper, P.C. is in the business of tying up loose ends and helping family members reach the best possible legal and financial outcomes after the passing of a loved one.
Call (770) 629-0154 today or reach out to us online to schedule your complimentary consultation with a member of our team.