What happens to your debt when you die?

[ivol07]

Does it transfer over to your dependents, or family or something? I've heard thats where it goes, but I'm not sure. Anyone know for sure?

 

[CraigRT]

maybe it's in your will??

 

[Ranger X]

If you have life insurance, that'll cover whatever it can. At work, we get 2x our pay for life insurance.

 

[Beau]

Anything joint will be passed on to the co-signer. Anything that is soley yours will be paid by liquidating your assets. Anything left over will be absorbed by creditors.

 

[XZeroII]

Mortgages and car loans usually have a clause that says that if the main payer dies, the debt is nullified and the spouse doesn't have to pay the money back.

 

[TheBullGod]

Debt can be transfered over to co-signers only I believe. Once you die your debt is terminated with you. Its illegal to try and make your family assume responsibility.

 

[LeeTJ]

Originally posted by: TheBullGod
Debt can be transfered over to co-signers only I believe. Once you die your debt is terminated with you. Its illegal to try and make your family assume responsibility.

are you talking secured debt or unsecured debt?? credit cards, automobiles etc, unsecured debt dies with you. secured debt means the property can be liquidated in order to pay off debt.

 

[Monel Funkawitz]

BullGod is correct. Sorta kinda.

Normally they will come to collect the item/s that are still owed on, or let the debt go as a write off.

 

[ToiletBowl]

Originally posted by: TheBullGod
Debt can be transfered over to co-signers only I believe. Once you die your debt is terminated with you. Its illegal to try and make your family assume responsibility.

So what happens to the poor businesses that are expecting that money??! What do they do? Go bankrupt?

 

Originally posted by: ToiletBowl

Originally posted by: TheBullGod
Debt can be transfered over to co-signers only I believe. Once you die your debt is terminated with you. Its illegal to try and make your family assume responsibility.

So what happens to the poor businesses that are expecting that money??! What do they do? Go bankrupt?

if its unsecured, yup. Part of the risk or lending out money and other stuffs.