Deceased Debt: Are Family Members Responsible for a Relative's Debts?
When a family member dies, chances are that they've left behind debt, and most family members don't understand how to handle the money owed after death. Luckily, the Fair Debt Collection Practices Act gives us some guidance on how to handle debt collectors who call during this vulnerable and tragic time. Let's take a look at some of the specifics about deceased debt, and how family members should handle it.
Who Owes it?
Usually, the estate of the deceased owes the money, and in fact, the creditors will be paid off before any other disbursements are made. If there isn't enough to cover the amount owed, then the creditors will go unpaid. Unfortunately, this is where an unscrupulous debt collection agency can try and take advantage of grieving family members. For instance, a collector may call and tell you that the deceased would have wanted you to pay off his bills, or that by not doing so, you're dishonoring his name. This is deceitful, and the FDCPA disallows a debt collector to use deceit in an attempt to collect a debt.
The truth is that unless you were a co-signer on the debt, or held a joint account with the deceased, you likely don't have any obligation to pay the debt. Even if you were the spouse, and the debt was exclusively in your spouses' name, you are not legally responsible for the debt. The same holds true for the children of the deceased - unless your name was on the account, a debt collector cannot hold you responsible for the debt after death.
Who Communicates with the Debt Collection Agency?
Anytime someone dies, there is an executor of the estate, and it's that executor who is responsible for dealing with debt that's left behind. Direct all debt collectors to the executor, and tell them not to call you anymore. The executor will take the information from each debt collector, and then when it's time to disburse the estate, will see to it that the deceased debt is paid. If there isn't enough in the estate to fully satisfy all of them, it will be divided up equally among them.
Many an unscrupulous debt collector will prey on the grieving during this time of loss, but don't become a victim to them. Know your rights under the Fair Debt Collection Practices Act, and then make sure that you're not taken advantage of. Here are a few things to keep in mind:
* If you don't want to communicate with the debt collector, write them a cease and desist letter telling them that, and then mail it certified mail, return receipt requested.
* If they continue to try and guilt you into paying the deceased debt, or try to shame you into paying it, record the call if your state allows it, and talk to a lawyer about filing a suit against them for violations of the Fair Debt Collection Practices Act.
* Some debt collectors will try and collect on false debts during this time, so make sure that the executor of the estate demands a debt validation letter from each debt collection agency before paying anything to them.
Who Owes it?
Usually, the estate of the deceased owes the money, and in fact, the creditors will be paid off before any other disbursements are made. If there isn't enough to cover the amount owed, then the creditors will go unpaid. Unfortunately, this is where an unscrupulous debt collection agency can try and take advantage of grieving family members. For instance, a collector may call and tell you that the deceased would have wanted you to pay off his bills, or that by not doing so, you're dishonoring his name. This is deceitful, and the FDCPA disallows a debt collector to use deceit in an attempt to collect a debt.
The truth is that unless you were a co-signer on the debt, or held a joint account with the deceased, you likely don't have any obligation to pay the debt. Even if you were the spouse, and the debt was exclusively in your spouses' name, you are not legally responsible for the debt. The same holds true for the children of the deceased - unless your name was on the account, a debt collector cannot hold you responsible for the debt after death.
Who Communicates with the Debt Collection Agency?
Anytime someone dies, there is an executor of the estate, and it's that executor who is responsible for dealing with debt that's left behind. Direct all debt collectors to the executor, and tell them not to call you anymore. The executor will take the information from each debt collector, and then when it's time to disburse the estate, will see to it that the deceased debt is paid. If there isn't enough in the estate to fully satisfy all of them, it will be divided up equally among them.
Many an unscrupulous debt collector will prey on the grieving during this time of loss, but don't become a victim to them. Know your rights under the Fair Debt Collection Practices Act, and then make sure that you're not taken advantage of. Here are a few things to keep in mind:
* If you don't want to communicate with the debt collector, write them a cease and desist letter telling them that, and then mail it certified mail, return receipt requested.
* If they continue to try and guilt you into paying the deceased debt, or try to shame you into paying it, record the call if your state allows it, and talk to a lawyer about filing a suit against them for violations of the Fair Debt Collection Practices Act.
* Some debt collectors will try and collect on false debts during this time, so make sure that the executor of the estate demands a debt validation letter from each debt collection agency before paying anything to them.