What happens if a person dies and has a lot of credit card debt?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

The credit card company will first try to collect from the estate. Creditors are not allowed to put the extra debt baggage on survivors if the estate is insolvent. Creditors will most likely close the account and write it off when they receive the death certificate and has filed a claim in probate towards the estate. Only way the survivors are responsible for the debt is if they want to pay off the debt themselves or if they are the joint owner of the debt.
More Information:
I just went through Probate court with my Grandma's estate and she had no estate to resolve so Creditors had to close the account and write it off. They are not allowed to come after heirs because they are not responsible for the debt because they are not co-owner or a co-debtor on the debt.

If the person who died owns a car and owes money to the bank, then the bank will repossess the car and auction it off. The difference between the loan and how much they got in the auction will determine if they will file a claim on that person who died on their assets to make up the difference.
371 people found this useful

What happens to their credit card debt when a single person dies?

Answer . Their estate is responsible for the debt. First, if the deceased has a home, property, condo, cars, etc., the estate will sell it off and pay the debtors. If there

What happens when a person is on Social Security Disability and cannot pay their credit card debt?

Answer . \nA person being on SSD or other disability benefits does not mean they cannot be pursued for collection of debt owed, including being sued by the creditor.\n. \

Who is responsible for credit card debt when a person dies in New York State?

Answer . If the person left a Will then Probating the Will will pay all debts the person has left behind and what is left in the Estate (is called 'residue) and this is wha

What happens when Spouse dies with credit card debt in his name only and has no assets?

1)His creditors will destroy his urn of ashes and make sure he does not rest in peace...(Not very sure... Don't blame me if it is wrong... I saw it from a show...) 2)His cre

What happens to credit card debt when someone dies in Nevada?

always look into the laws of the state. However, if someone dies it depends on their assets available. The company can sue the estate. You need to notify all of the companies
In Estates

If someone dies and leaves the house to their child but owes a lot of credit card debt can a lien be placed on the property to collect the debt?

es. The debts of the decedent must be paid before any property can be distributed. The creditor can file a claim against the estate. The estate must be probated if it contains