FAQs
If you are the executor or administrator of the deceased person's estate, debt collectors can contact you to discuss the deceased person's debts. Debt collectors are not allowed to say or hint that you are responsible for paying the debts with your own money.
Can debt collectors collect from family members after death? ›
In some states, you are always responsible for your spouse's debt after death, but only if the debt was accumulated while you were married. These are called “community property states”; they include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin (as of 2022).
Do you have to pay a dead family member's debt? ›
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
Can bill collectors contact family members? ›
A debt collector can contact your spouse. A debt collector can contact your parents or guardian if you are under 18 years old or live with them. A debt collector can also contact your attorney and, if otherwise allowed by law, credit reporting companies (Equifax, Experian, and TransUnion) about your debt.
Can creditors go after family members? ›
Similarly, creditors do not have the right to go after the assets of parents, children (for instance, child support), siblings, or any other family members.
What happens if you tell a debt collector you're dead? ›
Usually, when someone dies, their estate satisfies outstanding debts. If the estate does not include enough property, the debt usually cannot be collected. Sometimes, however, debt is shared. If you leave shared debt behind, your loved ones may end up with the bill.
Can a debt be inherited by heirs? ›
A deceased person's debt doesn't die with them but often passes to their estate. Certain types of debt, such as individual credit card debt, can't be inherited. However, shared debt will likely still need to be paid by a surviving debtholder.
How do creditors know when someone dies? ›
Settling claims from creditors: The executor must give notice of the person's death, usually by publishing in a newspaper or sending letters directly to creditors.
Will credit card companies forgive debt after death? ›
Unfortunately, credit card debt isn't wiped clean when a cardholder dies. That debt is still owed to the card issuers and must be paid by the estate or remaining signatory on the account.
Can creditors go after joint bank accounts after death? ›
Joint Bank Account Rules on Death
"It does not become part of the probate estate." Creditors may attempt to claim funds in a joint account to satisfy debts, but the funds are typically not considered part of the deceased's estate and should not be used to satisfy outstanding debts of the estate.
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
Can debt collectors call next of kin? ›
If you are the executor or administrator of the deceased person's estate, debt collectors can contact you to discuss the deceased person's debts. Debt collectors are not allowed to say or hint that you are responsible for paying the debts with your own money.
Can a debt collector talk to anyone else about my debt? ›
No Communication With Third Parties. The FDCPA expressly prohibits debt collectors from communicating with third parties about your debt, with a few limited exceptions. (15 U.S. Code § 1692c). Congress enacted this rule to protect the privacy of debtors.
Can debt collectors come after beneficiaries? ›
While creditors are given the first opportunity to stake their claims to a decedent's assets, they cannot hold heirs financially responsible for the deceased person's debts. Creditor claims are settled with a decedent's estate—not the decedent's heirs.
Do you have to pay dead relatives debt? ›
Generally, a dead person's estate is responsible for paying their debts by selling off estate assets. Once someone dies, they are a "decedent." The personal representative of the decedent's estate handles the estate administration according to the terms of a will.
What debts are not forgiven at death? ›
Additional examples of unsecured debt include medical debt and most types of credit card debt. If you die with unsecured debt, repayment becomes the responsibility of your estate. Your legal estate refers to all the assets, property and money left behind by you or another deceased person when they die.
Can debt collectors take money from inheritance? ›
If a creditor has already filed a claim against your inheritance and won in court, they can also go after your assets. In this case, it's best to consult with an attorney specializing in debt collection laws to help determine what steps need to be taken next and whether challenging the creditor's claim is worth it.
Can you get in trouble for using a dead person's credit card? ›
In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.
How do credit card companies know when someone dies? ›
However, once the three nationwide credit bureaus — Equifax, Experian and TransUnion — are notified someone has died, their credit reports are sealed and a death notice is placed on them. That notification can happen one of two ways — from the executor of the person's estate or from the Social Security Administration.