CC debt after spouse has passed

Anonymous · ‎08-05-2018

My wife recently passed away and when I called the CC company and told them they immediately shut down the account because it is in her name and gave it to a recovery service. I got in touch with them and ended up with a letter that states they will accept $,$$$ (half the amount) to satisfy the account. I see where in most states I would not be Liable for this debt but I lived in Arizona where everything is joint property. I do feel obligated for what's on the card and settlement for half seems to be a blessing. They did state a payoff date that that is barely a few days out. What is the best way to send a payment? Will this affect my credit? Any advice on this would be appreciated.

Hex · ‎08-05-2018

I don’t know the answer but I wanted to tell you I am sorry for your loss. Someone else here might know the answer. Do you have an attorney for her estate? That might be the best place to get an answer. I don't think its right for anyone to be asking you to make important decisions so soon after your loss.

Anonymous · ‎08-05-2018

My deepest condolences! I am hugging you so tight right now!!! I have been through this kind of nightmare when my husband passed away, I hope I can help you in some small way ...

1st if your wife had a will, everything will go into probate, including her debts. So don't agree to pay anything. By law you need to contact her creditors (by mail preferably) that she has passed away and to close the accounts. Then it will be up to them to file for payment thru the probate court, if they don't they lose all right to claim repayment.

If she had no will, then still contact them and let them know and close her accounts. Whatever you do, do not agree to take on the debt/repayment for now, tell them you need time to get through this nightmare first.

open a new bank account and move you money there, keep any joint acts open with small amounts (unless she got SS or SSI, then leave that amount in the acct)

contact SS/SSI immediately and report her passing, they can help you with a small benefit ($225), (if she was getting payments from them, they will have to recover any overpayment from DOD) also they will close her SSN to prevent fraud

contact all the credit burues and report her passing to freeze her credit report

Once you have caught your breath, then if she had no will, then sit down and look at your income and decide if you can realistically pay those debts. Unless you are a joint acct holder you have no legal obligation to pay them.

My husband had no will, What I did was pay them, I had no legal reason, but I felt moral obligation. I called each CC and explained what I could realistically pay (monthly) and worked out a payment plan at zero interest. If the CC would work with me and freeze the amount without adding interest or my SSN to the account I would pay it off. Some companies told me "don't worry about this debt and we are sorry about you loss" others agreed to my repayment plan only one said "NO" and so I sent them a check for 10% of the balance and in the memo I put my husbands acct number & paid in full (they cashed it and then tried to argue later, but the law was on my side) It took me 5 years and allot of tears, but I paid them all off

I hope that this help a little, please do not hesitate to PM me if I can help in any other way,

Big Hugs and I will keep you in my prayers

Save-n-Invest · ‎08-05-2018

I'm very sorry for your loss. Please accept my heartfelt condolences.

I agree with Hex regarding consulting with an attorney who may be helping wiht her estate. This is a very difficult time for you to try to interpret estate laws.

FWIW credit card issuers/lenders don't always provide accurate information as to a surviving spouse's responsibility.

Anonymous · ‎08-05-2018

Thanks Hex,
Getting your affairs in order after a loss is very frustrating.
This is the only debt she/we accumulated that needs addressed and not sure if it's advantages to hire an attorney?
By the way pay off is 6k.

Anonymous · ‎08-06-2018

@Anonymous wrote:
Thanks Hex,
Getting your affairs in order after a loss is very frustrating.
This is the only debt she/we accumulated that needs addressed and not sure if it's advantages to hire an attorney?
By the way pay off is 6k.

Because your acct was joint, they can close the acct or remove her name and keep the acct open in your name only.. but what they can not do is require you to pay in full or even pressure you to pay a "settlement" (once again from my experience).

You can and should continue to make regular payments so you don't get hit with lates. If you agree to the settlement offer and the acct is closed then please set up a repayment plan (this will not be adverse action on your CR), also please check to see if you had any kind of insurance on this acct (check your statement or call and ask) because so many times we say "sure" when we open our CCs and then forget.

Hugs and Prayers for you

Kree · ‎08-07-2018

Credit Card debt only goes to the surviving spouse, in most community property states, if the debt was connected to the relationship. Examples:

Purchased new oven for house. Owed.

Bought single person vacation. Not owed.

Bought groceries for household. Owed.

Bought laptop for new independent business venture. Not owed.

It gets a bit more complicated when you consider that it won't be a item by item review, but the total trend of the account. For example if 90% of the debt is household stuff, the 10% that wasn't would still be owed. Inversely if 90% was not household stuff, the 10% that was will not be owed.

then the question becomes is it percentage by dollar amount, or by number of purchases? Who decides if a particular purchase counts or not?

Lots of questions. Lawyers and tax accountants are often needed in these situations. But no matter what, do not pay now. If her debt was greater than her individual assets, you could also consider having the estate file bankruptcy. But thats a whole different scenario.

Save-n-Invest · ‎08-07-2018

Probate law is a state reg. My estate experience does not represent the other 49. The probate court may be able to advise if AZ has a small estate provision. An attorney is usually a good idea in most cases.

Anonymous · ‎08-08-2018

Send a copy of the death certificate
To the debt collector. If they file a claim against the estate, then the debt will need to be paid from the assets of the Estate. I wouldn’t be suprised if the debt disappeared if handled in this fashion. I did this after the passing of my father. Never heard a peep since.