08-02-2009 08:57 AM
I had a joint card (Chase) with my mother (she was the primary) and there was a balance when she passed. Originally, I thought I would assume the debt & put the card in my name but I was concerned about what this would do to my current credit. There was also major fraud committed on the card to the tune of $7k ( resolved with Chase) so I asked to close the account. I received a condolence letter stating I was not responsible for the remaining debt, but now I am getting calls about resolveing the debt and requesting information about my mother's estate.
I am confused as to who pays for this debt (myself or my mother's estate)? The balance is fairly high (she used this card to pay for various out of pocket medical expenses). Do I do a payment plan, a lump sum or nothing at all??
08-02-2009 09:03 AM
Normally a "joint" account means each party is responsible for 100% of the debt (yeah that is 200% right).
But in a death, I'm not sure if certain rules or laws prevail. Did you have any type of death or credit protection plan?
Did you mother have life insurance?
If these are her debts, then her life insurance benefits and estate should pay it. But if she didn't have insurance and her estate has no real assets or value, then you may be holding the bag.
You might try contacting (in writing) the bank and describing circumstances and see if you can be released from the account for some amount of money.
I would also (if the bill is high) speak to an attorney who understands wills, probate, estates and death benefits/issues. You need to make informed decisions, not uniformed guesses.
You might try joining Prepail Legal Services which charges $17 per month to give you access to telephone attorney consults and letter writing if cost is a factor (for attorney). PPL can refer you to an outside attorney as well with discount.
08-03-2009 01:10 AM
You are both responsible for this debt. No matter what, It must be paid, however, you have two options.
1) Pay the debt yourself
2) Pay the debt or a portion of the debt with money in your mothers estate.
It does not matter how you pay it. If you were to default and not pay this debt, then, and only then - the CC will go after your mothers estate, assuming there is still money left in her estate.
If you would like to remove her from the account, all you must do is send them a copy of Certificate of Death and they should ahve no problems removing you and maintaining the account in your name.
If it were me, and there was excess money in her estate - I would pay off or pay as much as possible using her estate then remove her via the above method.
Debt forgiveness programs offered thru CC companies, etc: are only valid if the owner of the account dies. In a situation where an account is held jointly, the other party is responsible - regardless of who actually used the account.
Hope this helps
P.S. I am a lawyer, so although this by far not my area of expertise, please feel free to contact me if you have any questions. Best of Luck!
08-03-2009 03:57 AM
I had a joint card (Chase) with my mother (she was the primary) and there was a balance when she passed ...
08-03-2009 05:18 AM
HTSU is correct if in fact you meant you were an AU, but if you held the account jointly, what I said above is applicable.
I too am sorry for your loss - sorry I didnt include that in my first post, its been a long day/night... I know how hard it is losing a mother/father.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.