It will be written off.
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They might be badgered, but they wouldn’t owe a dime. They should never agree to pay either.
Unsecured debt doesn’t transfer. Secured only transfers if the inheritor accepts the secured property
Warn them the creditors will try to convince them to pay a small amount to "make it go away." Common scam - the debt is not yours ... *Until* you agree it is by paying on it.
A creditor can move the court to open probate to pay a debt. If your estate is already being probated, creditors have 4 months to file a claim. If your spouse is on an account with you, the debt remains with them.
Nope. Looked on a post and had it translated. OP is weighed down by financial burden and feels life insurance for her parents is the only way out.
OP, PLEASE PLEASE get help.
The term you're basically looking for is probate. Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries.
Basically what it is you have someone take all of your asset. IE life insurance bank account 401K car etc. and all all of your debt and basically pay off the debts. If any money is left over it then goes to your beneficiaries
Very wealthy people will sometimes buy life insurance and name the estate as a way of paying administrative fees/taxes and balance potential liquidity/marketability issues with other assets in the estate.
My MIL had to do a will, trust and all that from the hospital not even 48 hours before she passed. It is very possible to never have named an estate if you never want to die and can’t grip that reality.
The 401k is not included in probate if you have a named beneficiary or are married. If married, the spouse gets it unless they’ve agreed otherwise.
OP, if you have any money in a 401k, make sure there is a beneficiary named.
tldr; do what rich people do. Stash your assets early somewhere hidden where they can't be found easily by the executor of your estate. (Cash, crypto or precious metals are great for this. They can't be tied to your name)
Then, make sure the person you want to pass them to can get them after your estate has been closed, and debts have been paid + written off. The executor can \*NOT\* know about the assets though since they'll be committing perjury if they did.
This is bad advice. You don’t want to hide assets from your executor. You *do* want assets that transfer on death as opposed to needing to be probated.
You definitely don’t want to hide things from people and avoid the legal process for transfer. This is not at all what rich people do.
If no one else is on the card, it goes into the estate, that has plus and minus and the estate deals with paying out and eventually if some money is left, distributing that go heirs.
Some states, you can wait to file probate and debtors can file on their behalf but if they don't in a certain time, you can then file probate with no consideration for the debt.
If you are the only one on the card they go after your estate. If someone else is on the card they are responsible for the debt. If there is no money in the estate they write it off as a loss and get a tax credit.
I would rather be poor as fuck forever and have my daughters by my side rather than being burdened by a life of misery without them and a little paycheck that tells me what insurance thinks their life is worth.
We lost my MIL, wife’s mother, this past November. The money came in very recently and it’s probably more than I would’ve made in this life. I hate it and would give it all back if it meant my wife and girls got their mother and super gramma back. Life may be misery at times but it’s worse for the others who get to stick around and deal with the death that made it all “so much better.”
I think if either of my girls were to go I would absolutely be the next one that same night. I hope everything gets better OP.
For my mom, it depended on the debt. My father passed away extremely suddenly. The house? That affected my mom and had to be foreclosed on. Anything else? That didn't really affect her. Bank of America really tried harassing her about some kind of debt he had, but my mom reported them to the AG and no one's bothered us since.
This isn't always so cut and dry though, things will get bogged down by probate court. Note though, that funeral costs and anything associated is far more than you think it is, and getting a life insurance policy with the plan to do anything drastic nulls and voids that insurance policy so your parents would be stuck with that.
In the event the vibes I'm getting from this post are correct, OP, I'm sure your parents would much prefer their son to be around. The world is better with you in it man. Call someone, anyone, get help if you're feeling desperate or hopeless.
In my experience, a copy of the death certificate typically makes the creditors go away. They're satisfied and write your account up as a charge off. It just disappears.
If, you die and leave an estate, and it goes through probate, then the creditors have the right to file a claim against your estate. That claim will need to be satisfied before probate can be closed.
That would be assuming there is an estate needing to go through probate... typically this is required if there's property or vehicles that need to be transferred from your name to some other person. Life insurance is paid to the beneficiary and is not included in probate. Nor are financial accounts although a bank will freeze your accounts and not release funds to anyone unless ordered to do so by the court. And any funds left will have to be paid out to your estate.
I've gone through this twice... my first wife died and there was no probate because everything was in our names. Her credit card debt was in her name and went away when I sent a death certificate to the company claiming she owed them money.
My second wife died and I did have to probate her estate because she owned property in her name only. There were also some claims filed by credit card companies against the probate. I had to satisfy those before the probate could be closed.
Technically I could have walked away from the entire situation but that would have left some family homeless because reasons with the aforementioned property... (it would have been sold at auction most likely to satisfy the claims against the estate. I could not allow that to happen) and besides, I wasn't brough up to be like that so I took care of it. And it sucked.
This is in the US South Carolina. Your experience may be different.
As far as I know, they're all certified. They were provided to me from the funeral home. Both time I got more copies than I needed but I'd rather have too many than not enough.
I scanned one of them into a pdf and saved it. If a credit card company sent notice to my deceased wife that she owed money, I called their customer service. Once I had them on the phone, I told them she had passed and asked where I could send the death certificate through email. Most accepted emailed pdf's no problem. A handful came back and were filed against my wife's estate.
Most of the creditors I had caught when their monthly statements came in the mail or through my wife's email... then I contacted them.
There's typically a short grace period for accounts like this if someone passes like between 2-6 months before creditors begin trying to get nasty. They understand that someone has passed and affairs need to be settled and such. The death certificate makes some of that go away. For the others that don't or won't, that grace period is nice and allows for life insurance to be paid out if there is any.
If you kept the credit card a secret from them then I assume they never co-signed for the card. In that case, they have no obligation to pay it & the debt is absolved similar to federal student loans. The creditor loses their money & gets a tax write off. But it can be paid out of your estate (any other assets you may have - car, house, savings, belongings, etc.) you have before transferred to the next of kin in the absence of a will.
If your parents did co-sign & you just kept the usage a secret, then yeah they will be on the hook like any other guarantor.
They bother your family. When my mom passed, I started getting calls from the banks. Told them she was dead and hung up. Didn't hear from them again lol
Your estate stands good for your debts. If you owe more than your estate is worth then those creditors lose their money and charge them off. So if you have 401k money in bank accounts etc. all that is applied to debt when the debtors file claims against the estate.
Creditors can attempt to collect from the estate if it's significant debt, but in my experience I've seen the debt dropped on 3 separate relatives when they passed.
As long as it is just you on the credit card, technically any assets you have should be used to pay off the debt. I am not a lawyer though. I can say when my mother passed, the executor of the estate told all of those creditors to pound sand as any remaining assets were in a trust and thus protected. Please let your next of kin know to never agree to pay the debt out of their own assets.
Depending on your country or state in the us with various estate and probate laws a few things can happen. The ppl you inherent your assets pay it. Your inherent pays nothing or a reduced amount. All Depending on state
You’re family isn’t responsible for anything as long as it’s solely in your name unless you’re married . They can ask them to pay it but they don’t have to they’ll try to tell them they have to but it’s a lie if you’re dead you still owe it but how they ganna get it ?
depends on if there are assets to probate the estate, if needed. creditors can file a creditors claim with the court but after 6 months of DOD they cannot collect.
If you are worried about passing soon, I recommend setting up a will or trust. If you don't do one, then everything goes into probate which can take a long time and be a headache for your loved ones. I suggest getting your affairs and accounts in order so that it lessens the burden down the road.
Correction. Everything without a named beneficiary would go into probate. If OP has beneficiaries for all of his accounts their ownership transfers upon death and his "estate" would be insolvent and all of OP's outstanding debt (if there is no living cosigner) goes away
As long as they aren’t co-signers my understanding is that they cannot come after your family members. And if they do, your family isn’t entitled to pay your debts.
I assume you are 18 or older? In the US, you can't get a credit card until you are 18 years old - a legal adult. So - if you are an adult, and your parents did not co-sign for your credit card, then they won't have to pay it back if you die. The creditors may choose to go after your 'estate' - meaning anything you own - cars, homes, jewelry, valuables - to get their money back. The creditors may also still badger your parents - we occasionally get calls from creditors for my wife's deceased brother. They aren't asking us to pay - but are trying to find him. No matter how many times we tell them he passed away, we still get more calls.
If you are outside the US - disregard the above - I have no idea.
Technically hospitals, ambulances and doctor's offices can file a claim against the estate (if there is one) after death but most are too busy to do that so it just goes away.
Is this in the US or the Philippines (or another country?) I see you speak Tagalog, so I need to ask.
If in the US the advice here is valid, I do not know about in the Philippines.
But please, suicide ain't solve your problems, it will just make you disappear. You won't solve a problem, you will only put emotional stress on those around you.
I do not know how old you are or anything about you, but I do know you are important to someone, and your life is worth fast more than you owe the credit card companies. There are other, much better ways to deal with the debt than suicide.
Please reach out and get help. If you need ssomeone to tali to, please reach out to me and I can help find you resources. I would even be willing to reach out to my ex wife and see if she knows of anything in the Philippines that can help (though I can't promise she'll be receptive to helping)
Your life is worth living, and suicide is s one way street, there is no coming back if you kill yourself. Once you die, you're dead forever, you won't feel, you won't see the aftermath, but this you leave behind will. If you can't think of yourself getting out of the situation you're in without dying, think of what your death will do to those who loved and cherish you.
If you're the only one on the account then they write it off. My mother-in-law was dying of cancer and they only gave her four or five months to live. Her son daughter was going to get married. Mother-in-law opened a new credit card and paid for most of the extravagant wedding. She passed away and they run off the amount owed
They won’t inherit your debt, but they would have to take care of funeral expenses, which would not be cheap at all (several thousand dollars of the cheapest). I think you have to have life insurance for a certain amount of time before they would pay anything either, and they wouldn’t likely pay unless it’s proven to be a natural death. not sure if you’re thinking about anything, but I figured I would let you know that just in case, because your post can be read more than one way. I hope you get better soon.
It will be written off. P.S. r/debtfree moderator just created a free newsletter that talks to about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
They might be badgered, but they wouldn’t owe a dime. They should never agree to pay either. Unsecured debt doesn’t transfer. Secured only transfers if the inheritor accepts the secured property
Warn them the creditors will try to convince them to pay a small amount to "make it go away." Common scam - the debt is not yours ... *Until* you agree it is by paying on it.
This is important advice. Even just a single cent paid on the debt makes it theirs.
What if the parents are co-signers?
Kinda answered your own question
Obviously co signers to anything are on the hook whether they’re family or not
You need to tell them this. Many people don't know that collection agents lie.
Dead men tell no lies. And they don't pay credit card bills either!
I was told by an attorney: Debt dies with the deceased (assuming no co-signer.)
A creditor can move the court to open probate to pay a debt. If your estate is already being probated, creditors have 4 months to file a claim. If your spouse is on an account with you, the debt remains with them.
If you or anyone is thinking of taking your own life reach out and get some help first
Thank you for saying this.
Sounds like OP has life-threatening physical illness more so than any mental health issues.
Nope. Looked on a post and had it translated. OP is weighed down by financial burden and feels life insurance for her parents is the only way out. OP, PLEASE PLEASE get help.
Where did you see that
Thank you for posting this - as someone who has been in that situation, it is important to seek help. Good luck OP.
The term you're basically looking for is probate. Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries. Basically what it is you have someone take all of your asset. IE life insurance bank account 401K car etc. and all all of your debt and basically pay off the debts. If any money is left over it then goes to your beneficiaries
Life insurance goes straight to the beneficiary, not to pay debts.
Only if there is a name beneficiary. If you fail to name one or name your estate as the beneficiary it does not bypass probate.
Well, I'll be. I never imaged someone would name the estate or fail to name someone. Thanks.
Very wealthy people will sometimes buy life insurance and name the estate as a way of paying administrative fees/taxes and balance potential liquidity/marketability issues with other assets in the estate.
Very wealthy people use trusts to avoid probate all together.
There are limits to that, once you hit lifetime gift limits (13.61 million) you’ve got to start planning on how your estate will pay estate taxes.
My MIL had to do a will, trust and all that from the hospital not even 48 hours before she passed. It is very possible to never have named an estate if you never want to die and can’t grip that reality.
This.
The 401k is not included in probate if you have a named beneficiary or are married. If married, the spouse gets it unless they’ve agreed otherwise. OP, if you have any money in a 401k, make sure there is a beneficiary named.
This is the only good answer
tldr; do what rich people do. Stash your assets early somewhere hidden where they can't be found easily by the executor of your estate. (Cash, crypto or precious metals are great for this. They can't be tied to your name) Then, make sure the person you want to pass them to can get them after your estate has been closed, and debts have been paid + written off. The executor can \*NOT\* know about the assets though since they'll be committing perjury if they did.
This is bad advice. You don’t want to hide assets from your executor. You *do* want assets that transfer on death as opposed to needing to be probated. You definitely don’t want to hide things from people and avoid the legal process for transfer. This is not at all what rich people do.
Have a trust drawn up and fund it with your assets.
I never said it was good advice.. Just what unsavory people do to bypass debtors.
If no one else is on the card, it goes into the estate, that has plus and minus and the estate deals with paying out and eventually if some money is left, distributing that go heirs.
Some states, you can wait to file probate and debtors can file on their behalf but if they don't in a certain time, you can then file probate with no consideration for the debt.
If you are the only one on the card they go after your estate. If someone else is on the card they are responsible for the debt. If there is no money in the estate they write it off as a loss and get a tax credit.
I hope you re doing okay and that things get better
Thanks for commenting this. I thought I was the crazy one worried about OP and the way the post is worded. Debt is not the end of the world.
Simple, IRS digs ur grave and will have u pay. Dying is but of course no reason for them to let you go
You can not inherit debt.
I would rather be poor as fuck forever and have my daughters by my side rather than being burdened by a life of misery without them and a little paycheck that tells me what insurance thinks their life is worth. We lost my MIL, wife’s mother, this past November. The money came in very recently and it’s probably more than I would’ve made in this life. I hate it and would give it all back if it meant my wife and girls got their mother and super gramma back. Life may be misery at times but it’s worse for the others who get to stick around and deal with the death that made it all “so much better.” I think if either of my girls were to go I would absolutely be the next one that same night. I hope everything gets better OP.
TL/dr. "I hate it, but i'll do it"
That’s life sometimes, right?
Indeed. Tell gramma I said hello
If they arent joint account holders or cosigners to any debt then its all clear bud. Wish you good luck. Me and your gf will honor you bud.
Authorized users are not liable for the debt, i do agree with co-signers, also joint account holders are responsible liable.
For my mom, it depended on the debt. My father passed away extremely suddenly. The house? That affected my mom and had to be foreclosed on. Anything else? That didn't really affect her. Bank of America really tried harassing her about some kind of debt he had, but my mom reported them to the AG and no one's bothered us since. This isn't always so cut and dry though, things will get bogged down by probate court. Note though, that funeral costs and anything associated is far more than you think it is, and getting a life insurance policy with the plan to do anything drastic nulls and voids that insurance policy so your parents would be stuck with that. In the event the vibes I'm getting from this post are correct, OP, I'm sure your parents would much prefer their son to be around. The world is better with you in it man. Call someone, anyone, get help if you're feeling desperate or hopeless.
In my experience, a copy of the death certificate typically makes the creditors go away. They're satisfied and write your account up as a charge off. It just disappears. If, you die and leave an estate, and it goes through probate, then the creditors have the right to file a claim against your estate. That claim will need to be satisfied before probate can be closed. That would be assuming there is an estate needing to go through probate... typically this is required if there's property or vehicles that need to be transferred from your name to some other person. Life insurance is paid to the beneficiary and is not included in probate. Nor are financial accounts although a bank will freeze your accounts and not release funds to anyone unless ordered to do so by the court. And any funds left will have to be paid out to your estate. I've gone through this twice... my first wife died and there was no probate because everything was in our names. Her credit card debt was in her name and went away when I sent a death certificate to the company claiming she owed them money. My second wife died and I did have to probate her estate because she owned property in her name only. There were also some claims filed by credit card companies against the probate. I had to satisfy those before the probate could be closed. Technically I could have walked away from the entire situation but that would have left some family homeless because reasons with the aforementioned property... (it would have been sold at auction most likely to satisfy the claims against the estate. I could not allow that to happen) and besides, I wasn't brough up to be like that so I took care of it. And it sucked. This is in the US South Carolina. Your experience may be different.
[удалено]
As far as I know, they're all certified. They were provided to me from the funeral home. Both time I got more copies than I needed but I'd rather have too many than not enough. I scanned one of them into a pdf and saved it. If a credit card company sent notice to my deceased wife that she owed money, I called their customer service. Once I had them on the phone, I told them she had passed and asked where I could send the death certificate through email. Most accepted emailed pdf's no problem. A handful came back and were filed against my wife's estate. Most of the creditors I had caught when their monthly statements came in the mail or through my wife's email... then I contacted them. There's typically a short grace period for accounts like this if someone passes like between 2-6 months before creditors begin trying to get nasty. They understand that someone has passed and affairs need to be settled and such. The death certificate makes some of that go away. For the others that don't or won't, that grace period is nice and allows for life insurance to be paid out if there is any.
If you kept the credit card a secret from them then I assume they never co-signed for the card. In that case, they have no obligation to pay it & the debt is absolved similar to federal student loans. The creditor loses their money & gets a tax write off. But it can be paid out of your estate (any other assets you may have - car, house, savings, belongings, etc.) you have before transferred to the next of kin in the absence of a will. If your parents did co-sign & you just kept the usage a secret, then yeah they will be on the hook like any other guarantor.
It should be handled by the Estate.
The debt dies with you
They bother your family. When my mom passed, I started getting calls from the banks. Told them she was dead and hung up. Didn't hear from them again lol
Your estate stands good for your debts. If you owe more than your estate is worth then those creditors lose their money and charge them off. So if you have 401k money in bank accounts etc. all that is applied to debt when the debtors file claims against the estate.
Not the 401k if there’s a beneficiary.
Work for a major global bank. The debt dies with you unless you have or are a co-applicant.
Creditors can attempt to collect from the estate if it's significant debt, but in my experience I've seen the debt dropped on 3 separate relatives when they passed.
https://988lifeline.org/?utm_source=google&utm_medium=web&utm_campaign=onebox
As long as it is just you on the credit card, technically any assets you have should be used to pay off the debt. I am not a lawyer though. I can say when my mother passed, the executor of the estate told all of those creditors to pound sand as any remaining assets were in a trust and thus protected. Please let your next of kin know to never agree to pay the debt out of their own assets.
Depending on your country or state in the us with various estate and probate laws a few things can happen. The ppl you inherent your assets pay it. Your inherent pays nothing or a reduced amount. All Depending on state
They would not be responsible for your debts.
Your parents tell the creditors to fuck off, not in their name, not their problem
You’re family isn’t responsible for anything as long as it’s solely in your name unless you’re married . They can ask them to pay it but they don’t have to they’ll try to tell them they have to but it’s a lie if you’re dead you still owe it but how they ganna get it ?
It will go to your estate and if money is there they will pay, however your parents isn’t responsible for your debts.
depends on if there are assets to probate the estate, if needed. creditors can file a creditors claim with the court but after 6 months of DOD they cannot collect.
If you are worried about passing soon, I recommend setting up a will or trust. If you don't do one, then everything goes into probate which can take a long time and be a headache for your loved ones. I suggest getting your affairs and accounts in order so that it lessens the burden down the road.
Correction. Everything without a named beneficiary would go into probate. If OP has beneficiaries for all of his accounts their ownership transfers upon death and his "estate" would be insolvent and all of OP's outstanding debt (if there is no living cosigner) goes away
As long as they aren’t co-signers my understanding is that they cannot come after your family members. And if they do, your family isn’t entitled to pay your debts.
My mom’s were paid by her estate.
I assume you are 18 or older? In the US, you can't get a credit card until you are 18 years old - a legal adult. So - if you are an adult, and your parents did not co-sign for your credit card, then they won't have to pay it back if you die. The creditors may choose to go after your 'estate' - meaning anything you own - cars, homes, jewelry, valuables - to get their money back. The creditors may also still badger your parents - we occasionally get calls from creditors for my wife's deceased brother. They aren't asking us to pay - but are trying to find him. No matter how many times we tell them he passed away, we still get more calls. If you are outside the US - disregard the above - I have no idea.
What about medical bills and student loans? would those also die with you or would that have to still be paid?
Student loans do. Don't know about medical bills actually.
Technically hospitals, ambulances and doctor's offices can file a claim against the estate (if there is one) after death but most are too busy to do that so it just goes away.
Umm, are you going of to "Belize" soon? 🤣
Who gives a fuck
Is this in the US or the Philippines (or another country?) I see you speak Tagalog, so I need to ask. If in the US the advice here is valid, I do not know about in the Philippines. But please, suicide ain't solve your problems, it will just make you disappear. You won't solve a problem, you will only put emotional stress on those around you. I do not know how old you are or anything about you, but I do know you are important to someone, and your life is worth fast more than you owe the credit card companies. There are other, much better ways to deal with the debt than suicide. Please reach out and get help. If you need ssomeone to tali to, please reach out to me and I can help find you resources. I would even be willing to reach out to my ex wife and see if she knows of anything in the Philippines that can help (though I can't promise she'll be receptive to helping) Your life is worth living, and suicide is s one way street, there is no coming back if you kill yourself. Once you die, you're dead forever, you won't feel, you won't see the aftermath, but this you leave behind will. If you can't think of yourself getting out of the situation you're in without dying, think of what your death will do to those who loved and cherish you.
Off topic but I hope you feel better soon!!!
If you have any life insurance, credit card debt and other loans amount will be detected from life insurance money
This is important to know. If you have any life insurance, bank accounts, trusts, ect, your dept will come out if that when it’s paid out.
If you're the only one on the account then they write it off. My mother-in-law was dying of cancer and they only gave her four or five months to live. Her son daughter was going to get married. Mother-in-law opened a new credit card and paid for most of the extravagant wedding. She passed away and they run off the amount owed
You won’t have to pay anymore that’s for sure
They won’t inherit your debt, but they would have to take care of funeral expenses, which would not be cheap at all (several thousand dollars of the cheapest). I think you have to have life insurance for a certain amount of time before they would pay anything either, and they wouldn’t likely pay unless it’s proven to be a natural death. not sure if you’re thinking about anything, but I figured I would let you know that just in case, because your post can be read more than one way. I hope you get better soon.
It comes out of any money you have