If someone dies owing more in credit card debt than the value of their estate, what happens to that credit card debt?
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Anonymous
ANSWERS: 4
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It would depend on the person's situation. If all the debts were solely their own, then the debts are written off, because the credit card companies can only collect from the people who are on the account, unless there is a cosigner or joint accountholder. If they had joint accounts/cards, the other person(s) would get stuck with the remaining balances. In no circumstance would anyone else get the debt attached to them. If a person did not agree and sign for the credit card, it is legally not their debt. Sometimes creditors call the people who are related to a dead person and try to tell them they owe that person's debt, and that's just not true.
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If someones mother passes away and they have a credit card in her name but is authorized to use it are they responsible for the debt?
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Once the estate has been completely liquidated, everything sold off to pay debts, that includes the china she always wanted you to have, and great grandpa's pocket watch, and everything else, then the debt is written off. As just an authorized user, they shouldn't try to go after you, if they try anyway, and probably will, you're clear. Credit card companies are currently lobbying congress to change this. They want to make any surviving relatives liable for the deceased person's debt. If this idea bothers you, you might want to let your elected representatives know.
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nothing at all
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