How to Handle Collection Calls For A Deceased Person's DebtAre you being contacted about a deceased person's debt? The last thing you need when you are mourning the death of a loved one are calls from debt collectors demanding that you pay his (or her) past due debts. Yet, collecting the debts of the dead is a growing and lucrative market for debt collectors.In fact, some debt collectors receive training on how to talk to the bereaved. According to a New York Times article on the subject, one debt collection firm even transfers grieving relatives to a grief counselor who tries to help them cope with their emotions so that the collection firm will be more successful collecting from the bereaved relatives at a later date! Creepy, huh? And pretty outrageous too, especially considering that in many instances surviving relatives are under no legal obligation to pay the unpaid debts of their deceased loved ones. Sadly however, many relatives do pay deceased persons debts out of a sense of obligation to the person they have lost. The Most Important Question: Are You Responsible For Their Debts?Here are the facts. Generally when someone dies, the outstanding debts of the deceased are paid out of her estate during the probate process. If there is not enough money in the estate to pay all of those debts, the unpaid creditors are out of luck.What's in an estate? An estate is all of the assets owned by the deceased and it’s the responsibility of the deceased’s creditors to file claims for payment from the estate with the probate court in the state where the deceased resided. Certain assets may pass to beneficiaries or spouses outside the estate and so they are not subject to claims against estate of the person who died. For example, if your relative had a life insurance policy and named you as the beneficiary, that money is yours, and cannot be taken by the deceased person's creditors. Retirement accounts left to a beneficiary are usually protected as well. Joint property you owned with the person who died may also be safe. What is probate? Probate is a legal process for administering the estate of someone who died. During probate, anyone who is owed money can file claims with the probate court requesting payment from the assets in the deceased’s estate. The "executor," or person managing the estate, pays as many of the valid claims as possible out of available assets. In many states, there are informal alternatives to the traditional probate process that allow an estate to be handled faster, and more informally. (These alternatives are also less expensive.) Also, some states allow small estates - where there aren't many assets and the assets are not worth much - to avoid probate all together. Instead, the deceased persons debts are settled through a non-court process. You May Be Personally Responsible for A Deceased Persons Debts If...You cosigned for the debt. You will be fully responsible for any joint debts after the other borrower dies.The person who died is your spouse. In this instance, you could have some obligation to pay his or her outstanding debts. If you live in a community property state: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin you may be responsible for debts incurred by your spouse during your marriage even if you did not cosign. A probate or estate planning attorney can help you determine whether that's the case. Of course, if your spouse left behind a large enough estate, all of those debts will get paid through the probate process. Who Handles the Debts?The tricky part for creditors and collectors has been trying to identify the person responsible for handling the financial matters of the estate when there is no formal probate process and no one has been named as executor. In some states, where a less formal process has been developed, the person handling the final matters of the estate will be called the "personal representative" though there are other names for that role.Don't be confused. Just because you are managing details like the funeral, that does not mean you are responsible for handling the deceased persons debts. Figure out who is going to be officially handling these matters and refer all creditor calls to that person. Once a debt collector has located the person acting as personal representative, executor or something similar, they must stop calling anyone else. Again, just because someone is named personal representative or executor, that does not make them personally responsible for the deceased persons debts. What If There Is No Money to Pay Debts?In this economy, many people will die with little or no assets available to pay debts. If you aren't sure which assets of the deceased may be protected from creditors (a vehicle, savings, jewelry, bank accounts etc.) it is a good idea to make an appointment to talk with a board certified estate planning attorney or an attorney who regularly handles probate cases. The attorney can advise you on whether creditors can go after assets left by the person who died.If there are no assets to pay that person's debts and a creditor or collector contacts you about paying them, you may want to simply send the creditor and/or collector a certified letter stating that fact and instructing the collector not to contact you again. (This is your right under the Fair Debt Collection Practices Act.) Once a debt collector receives your cease contact letter it must not contact you again, except to notify you of legal action (which may not happen if there is nothing left to go after.) Get Legal Help If...The federal Fair Debt Collection Practices Act protects you when you are contacted by a debt collector about a debt owed by a loved one who has passed. Your state may also have a law that protects you.Talk with a consumer law attorney right away if a debt collector is:
Find out how to get a free consultation with a consumer law attorney about debt collector harassment. What Is Your Question About Debt Collection For A Deceased Person?
Ask you question about dealing with a debt collector who is collecting a deceased person's debt here. Please be specific, including dates, and be sure to list the state you live in. Deceased Person's Debt Collection Q&APlease review these questions and answers from others... probate court pros and cons Hi. my name is chad. i lost my wife 2 weeks ago. We live in connecticut. what are the pros and cons of going Vs. not going to probate court? Old debts for a deceased person Is the estate required to pay really old debts? We are getting calls to pay debts from 2006, and we have no idea if the charges are warranted or may have ...
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my husband left me no money neither anything i can sell to get money,am i responsible for his oncology office visits OPPRESED BY PROBATE SYSTEM AND JUDGES/LAWYERS WHO IGNORE / DEFY WRITTEN LAW Both my deceased husband's name and my name (his wife) are on the title to our house. We owe 155,000, but the house is worth 205,000 +. When I filed ... credit card debt after husband's death my husband died and left everything to me. His credit card is in his name and I am an authorized user, do I have to pay the credit card off ? Responsibility for Debt in a Negative Net Worth Estate My husband and I own several properties on which we owe more than the value. We also both have significant individual credit card debt. We live in a ... Will my father's estate pay the car loan we got together? My father and I jointly purchased a car. The loan is primarily in his name. He died May 2010. The bills now come to the Estate of my father but I have ... Will My Mom Owe the Medical Debt My Deceased Dad Left Behind? My dad recent passed. But before account he did, he was in a nursing home for about 4-5 months. His medicaid application was pending when he passed. Now ... Deceased Father's Debt My Father passed away quite suddenly and left behind quite a bit of credit card debt and a Equity mortgage. I sent a copy of his Death certificate to all ... Am I Responsible For Late Husband's Debts? I just recently married my husband 3 months ago. He passed away this week. I know he had some hospital bills that were not yet paid prior to our marriage.... my sister died we have house payments iam paying she has credit debt i can not pay they are having lawyers call me my sister and i have house paments we are on house together she passed away she has credit card debt i have no money for Credit check on deceased father Can I legally run a credit check on my deceased father? Also, my deceased Grandfather's trust states that if my father has passed then my brother and I ... Credit Card of My Deceased Sister My sister passed away last nov, and left me as executix. The estate was declared a small estate, $10,000. I paid her cremation, etc.. Then bank of america ...
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My dad passed away 8 years ago he had a pickup that they both owed on. can they garnish my mom's social security check? Discover to collect on deceased mom's account My mother resided in Arizona. I lived there until 2 months ago and now live in Minnesota. She had a large ($10,000+) bill with Discover and I was a secondary ... Spouse responsible for medical debts? My husband had a few surgeries before he comitted suicide. The hospital and bill collectors say I am resposible for thousands of dollars on his medical ... Creditors File Judgment After Debtors Death My father died 9/2006 - left a car loan. Creditors file default judgment 9/2010. I pay off car loan and want to transfer car on my name. Can creditors ... Deceased Husband in Louisiana left a condo in his name I am not co-borrower for the condo. It was a business thing. Our home is another state and he was sent to Louisiana to work and got tired of living in ... Deceased Husbands Debts And Insurance Policy I live in Arizona where it is a community property state. My husband committed suicide last month and I have received medical bills in his name only. I ... Can credit cards my deceased husband own put a lien on this trailer we owned together? My husband died last month. He had 3 credit cards that he was paying on. The largest one being $4800. These were in his name only. We were living on ...
Deceased with Debt
Can debt collectors find out a person owned a home or car if there wasn't an estate filed and there was no will? Learn more about dealing with a deceased parent's debt in this video from DebtConsolidationCare.com Learn about your rights when contacted about deceased persons debts
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