Does a debt go away when the debtor dies?

Does a debt go away when the debtor dies?Unfortunately, no, the debt does not simply go away after a person passes away. Generally, the deceased person’s estate is responsible for paying any unpaid debts. The estate’s finances are handled by the personal representative, executor, or administrator of the estate. That person must pay any debts from the money in the estate; however, not from their own money. If you have an attorney, the attorney is able to assist you with negotiating debt in the event that the estate has limited funds for the debts.

Who has the authority to pay the deceased person’s debt out of his or her assets?

The estate’s finances are handled by the personal representative, executor, or administrator of the estate. If the decedent passed away and was married at the time of passing; the spouse can negotiate debts if they are in fact joint accounts.

Whom may a debt collector talk to about a deceased person’s debt?

Debt Collectors may only speak to people over the age of eighteen and either to the spouse of the decedent. An executor, administrator or an attorney when speaking about debts.

If there is not an executor appointed then who handles the debts of an estate?

Generally, speaking if an executor is not appointed then the estate is usually insolvent; meaning there is no money in the estate for the debts. The debtors will ask for proof of documentation regarding the assets of the account to make a determination to release any claims against the estate.

If the deceased does not have money then who must pay their debts?

In the event, there is simply no money in the estate, then as mentioned prior, the debtors will require verification of the estate evidencing that there are no funds. In this event, the debtors will write of the debt and send a release of claim for the estate evidencing the write off.

 

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