What happens to a single person's debt...

[slick230]

... if something happens to them? Single, no commonlaw relationships, no children, just parents? Do the parents end up getting stuck with the debt? I don't see how. Things like car payment, mortgage, credit card bills, etc? Always wondered about that.

 

[Ryan]

I know that with most loans, you can purchase insurance so that if something does happen to you, the debt will be taken care of. I have the insurance on my car and credit card 🙂

 

[slick230]

Originally posted by: rbloedow
I know that with most loans, you can purchase insurance so that if something does happen to you, the debt will be taken care of. I have the insurance on my car and credit card 🙂

That's cool if you have a family with a wife who would get stuck with the debt. But if you're single what's the point. They can't take anything from you when you're dead. And, again, I can't see how the parents could possibly be held responsible for any of the bills if their names are nowhere on the bills.

 

[beer]

Any estate is dissolved to pay the debts. If they are unpaid there is no legal way for them to get the money besides threats which have no legal ground.

 

[Dissipate]

Originally posted by: slick230
... if something happens to them? Single, no commonlaw relationships, no children, just parents? Do the parents end up getting stuck with the debt? I don't see how. Things like car payment, mortgage, credit card bills, etc? Always wondered about that.

As far as I know spouses are responsible for each other's debts since they have joint ownership of everything (unless maybe they got a pre-nup). Parents who co-sign on loans for their kids are responsible for the debt if their kid defaults, if their son/daughter is over 18 and they rack up debt that the parents didn't cosign on the parents are responsible for nothing. Also, relatives are not responsible for your debt unless they cosigned or agreed to pay the debt if its defaulted on as well.

If someone has debt that they cannot pay and have no chance of getting out of then they simply file for bankruptcy. Bankruptcy is terrible because it is a scar that lasts years on your credit. Ever see in the movies or the cartoons where a son/daughter/grand son/grand daughter receives an inheritance but it turns out that all they inherited was debt? Doesn't work like that in real life, fortunately.

 

[Pliablemoose]

An administrator is appointed by the courts to deal with the financial issues, my wife was made administratrix of her dead ex's estate. It's a serious headache.

 

[allisolm]

As far as I know spouses are responsible for each other's debts since they have joint ownership of everything (unless maybe they got a pre-nup).

Don't know about all states, but this is definitely not true in Florida.

 

[Mallow]

I know in Texas parents can be responsible for loan debt of children who die even if they are indepenents. This is presicely the reason I have life insurance.

 

[StageLeft]

Originally posted by: allisolm
As far as I know spouses are responsible for each other's debts since they have joint ownership of everything (unless maybe they got a pre-nup).

Don't know about all states, but this is definitely not true in Florida.

Really? I know that if I went up to $150k in consumer debt and died it would go over to Mrsskoorb. It only makes sense.

 

[allisolm]

Really? I know that if I went up to $150k in consumer debt and died it would go over to Mrsskoorb.

LOL. If you ran up $150k in consumer debt I'm pretty sure you WOULD die - at the hands of Mrs Skoorb!