Credit Card Debt Unpaid - Who Owes Credit Card Debt If Spouse Dies and How Do You Deal With It?
Who can ever expect that one's spouse would leave the world one day - leaving the other living partner to take responsible for the credit card debt of their deceased partner.
It's definitely hard to accept two major disappointments of their lives that could even affect their financial situation.
Many financial advisors have been encouraging couples to openly discuss their financial situation including how they manage their personal finances if either one of them pass away.
It's hard to expect when such unfortunate event would happen on you and there are few circumstances that you don't have to take responsible for your spouse's debt:
Inform all creditors that the account holder has passed away You have to send a copy of the death certificate and other related documents including the account number to the credit card companies.
Keep a copy the letter for your future reference and remember to send the original copy via certified mail as a proof that the mail has been delivered to the right recipient.
2.
If your spouse has savings or assets - use it to pay off debt If your spouse has cash savings or any valuable assets, you have to pay off the total outstanding debt with it.
If you've any questions about making payment with your spouse's assets, you can refer to the executor.
3.
Be firm and don't simply answer all calls from the debt collectors Answering relentless debt collection calls might the most difficult part to handle.
You need to succumb to such pressuring calls from the debt collectors for a short period of time.
If it's regarding paying off debt with your spouse's assets - always remember to clarify all doubts with the executor.
Don't simply answer all questions that you're not familiar with.
4.
Make sure the debt does not exceed the statute of limitations Most people would get rid of their debt legally without paying a single cent if their debt has passed the statute of limitations.
In that case, if the debt collectors asking for a debt payment which the debt has passed the statute of limitations - get a lawyer to help you get out of debt that you're not responsible for.
5.
Settle debt with the creditors on behalf of your spouse If your spouse doesn't have any assets, you have to act fast to negotiate with the creditors for settlements.
In this case, you can make a settlement offer and make the best offer that you can.
Once you've reached to an agreement, make sure it's done in writing before you start making payment.
It's definitely hard to accept two major disappointments of their lives that could even affect their financial situation.
Many financial advisors have been encouraging couples to openly discuss their financial situation including how they manage their personal finances if either one of them pass away.
It's hard to expect when such unfortunate event would happen on you and there are few circumstances that you don't have to take responsible for your spouse's debt:
- Certainly, if the card is under your spouse's name and the debt is owed by your spouse
- If you or your spouse are a second cardholder on the account who has charging privileges and the account is not a joint account
- If you or your spouse are a second cardholder on a joint account - in that case, you have the bear your spouse's responsibility to pay off card debt because your name is listed in the credit report
- You're likely to take full responsibility for your spouse's debt if you reside in community-property state.
However, these rules vary by state.
Therefore, you have to consult your lawyer for more details about common property law in your state.
Inform all creditors that the account holder has passed away You have to send a copy of the death certificate and other related documents including the account number to the credit card companies.
Keep a copy the letter for your future reference and remember to send the original copy via certified mail as a proof that the mail has been delivered to the right recipient.
2.
If your spouse has savings or assets - use it to pay off debt If your spouse has cash savings or any valuable assets, you have to pay off the total outstanding debt with it.
If you've any questions about making payment with your spouse's assets, you can refer to the executor.
3.
Be firm and don't simply answer all calls from the debt collectors Answering relentless debt collection calls might the most difficult part to handle.
You need to succumb to such pressuring calls from the debt collectors for a short period of time.
If it's regarding paying off debt with your spouse's assets - always remember to clarify all doubts with the executor.
Don't simply answer all questions that you're not familiar with.
4.
Make sure the debt does not exceed the statute of limitations Most people would get rid of their debt legally without paying a single cent if their debt has passed the statute of limitations.
In that case, if the debt collectors asking for a debt payment which the debt has passed the statute of limitations - get a lawyer to help you get out of debt that you're not responsible for.
5.
Settle debt with the creditors on behalf of your spouse If your spouse doesn't have any assets, you have to act fast to negotiate with the creditors for settlements.
In this case, you can make a settlement offer and make the best offer that you can.
Once you've reached to an agreement, make sure it's done in writing before you start making payment.
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