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What would happen

If you were an die with substantial credit card debt?! Like 50k?!
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Re: What would happen

[ Edited ]

Say what!?!?! What would happen if you were to die owing 50k in credit card debt? Am I understanding right? If so good question hahha :smileyhappy:

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Re: What would happen


SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

Well, the creditors can go after an estate if the debtor has one. If the person doesn't have an estate the banks can write it off. 

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Re: What would happen

[ Edited ]

SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

I can't remember which CCC it was, but they came after my mother-in-law shortly after my father-in-law passed. She was taking it very hard, and did not pay attention to all his finances and missed a card he had. It became late and she became responsible for the balance and late fee's, etc.

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Re: What would happen

The creditor going to updated  new address and sent bill to  new ""grave "" address every months until no mail man going to delivery it.............


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Re: What would happen


SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

It would be deducted from the life insurance payout, since you were responsible and purchased a policy for at least 3x your current annual salary. 

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Re: What would happen

[ Edited ]

Cdnewmanpac wrote:

SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

It would be deducted from the life insurance payout, since you were responsible and purchased a policy for at least 3x your current annual salary. 


I'm thinking that was the issue with my in-laws. I don't think he had any life insurance, but i'm not positive. I'm like you though. My employer offers some great rates on life insurance, etc and I'm still young enough that it barely costs anything to have 7 times my salary (the max they do).

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Re: What would happen


j_casteel wrote:

SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

I can't remember which CCC it was, but they came after my mother-in-law shortly after my father-in-law passed. She was taking it very hard, and did not pay attention to all his finances and missed a card he had. It became late and she became responsible for the balance and late fee's, etc.


Was your mother-in-law a joint account holder? Unless she was, I don't see how it would be legal that she be held responsible for her husband's credit card management. Balances, sure, but late fees and such???

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Re: What would happen


Cdnewmanpac wrote:

SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

It would be deducted from the life insurance payout, since you were responsible and purchased a policy for at least 3x your current annual salary. 


You need to check the state in which you reside, but life insurance proceeds are typically not part of the deceased estate.  As such, creditors can not go after them as the debt would be a debt owed by the estate.  Its one of the benefits of life insurance proceeds.  However, there is a work around by the creditors.  If you probate the will (if there is one)/open a succession and accept the succession then you maybe personally liable for the debts of the estate.

 

 



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Re: What would happen


HiLine wrote:

j_casteel wrote:

SantaMar wrote:
If you were an die with substantial credit card debt?! Like 50k?!

I can't remember which CCC it was, but they came after my mother-in-law shortly after my father-in-law passed. She was taking it very hard, and did not pay attention to all his finances and missed a card he had. It became late and she became responsible for the balance and late fee's, etc.


Was your mother-in-law a joint account holder? Unless she was, I don't see how it would be legal that she be held responsible for her husband's credit card management. Balances, sure, but late fees and such???


I'm not sure of all the details, but she ended up paying it regardless. She may have been a joint owner. I just remember my wife telling me how her mom had to pay off her dad's CC after he died or they were going to try to send her to collections.

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