what happens to your debt when you die reddit?
428215
Despite what people are saying, debts don't get "discharged" when you die. If you are the only debtor (nobody cosigned the loan), then your creditor will proceed against your estate to get their money back. If you have no value in your estate, then the creditor has nothing to pay the debt with.
1433422
Can You Inherit Debt in Canada? The simple answer is no—the debts of your parents, partner, or children do not become yours if they pass away, nor will your debts be transferred to someone else should you die. ... That means a person's debts must be paid out before any inheritance proceeds are paid to their beneficiaries.
1409716
First, if someone dies, responsibility does not automatically fall to the survivors. In Canada, debts cannot be inherited and cannot be transferred upon the death of a spouse. ... Your mother is only legally liable for your father's debts if she co-signed the loan or guaranteed payment. Legally this is known as joint debt.
861125
According to the U.S. Department of Education, if the borrower of a federal student loan dies, the loan is automatically canceled and the debt is discharged by the government.
1001790
Generally, family members are not responsible for any debts for someone who has died. ... Funeral expenses, taxes and secured debts are the top. Unsecured debts, such as credit cards, are near the bottom. If the estate does not have enough money to pay back all the debt, creditors are out of luck.
306639
In general, your assets and debts become part of an estate. It's the estate's responsibility to pay them. If there's any money left, it goes to your heirs. If there's not enough money to cover all the debts, they may go unpaid.
806874
Most unsecured creditors will normally write off a debt (like a personal loan or credit card) if there's little or no money left when a person dies. They'll normally only pursue the debt if there's a large estate.
849954
No, when someone dies owing a debt, the debt does not go away. Generally, the deceased person's estate is responsible for paying any unpaid debts. ... If there was a co-signer on a loan, the co-signer owes the debt. If there is a joint account holder on a credit card, the joint account holder owes the debt.
429944
Who pays your debts when you die? Your debts become the responsibility of your estate after you die. The executor of your estate is the person(s) responsible for dealing with your will and estate after your death. They will use your assets to pay off your debts.
317154
In Texas, credit card debt goes to spouse after someone dies. ... Credit card debt is not secured, so there is often no recourse for the credit card company to get its money back following probate. However, since Texas is a community property state, a person's spouse is responsible for any debt incurred during the marriage ...
385128
Unfortunately, credit card debts do not disappear when you die. ... The executor of your estate, the person who carries out your wishes, will use your assets to pay off your credit card debts. But when your credit card debts have depleted your assets, your heirs can be left with little or no inheritance.
445994
Any debts you leave behind when you die can eat up assets that you had hoped to leave to heirs. In some cases, family members could even be on the hook for your debt. ... The executor of your estate, the person responsible for dealing with your will and estate after your death, will use your assets to pay off your debts.
1068642
What happens to your debt when you die *and* have no assets? How do they even attempt that? no cosigner exist, the debt is all written off once the assets of the "estate" is gone.
911669
Your estate is everything you owned at the time of your death. The process of paying your bills and distributing what's left is called probate. The executor of your estate, the person responsible for dealing with your will and estate after your death, will use your assets to pay off your debts.
215558
When it comes to student loans, that specific debt does die with you (in the UK, at least). When someone dies the Student Loans Company will cancel their student loan, as long as someone lets SLC know they have died and provides evidence (a death certificate) and the person's customer reference number.
589865
If no surviving spouse, children, or grandchildren are living at your death, or otherwise exist, then your assets would pass to collateral heirs. Collateral heirs include your parents, siblings, and grandparents along with any other next of kin such as aunts, uncles, nieces, nephews, and cousins.
1140019
When a person dies, any outstanding debts are paid off by any money or property left behind. This is known as their estate. The executor in the will divides up the estate, and gives the assets to the beneficiaries.