Do you have to pay credit card debt if your spouse dies?
Do you have to pay credit card debt if your spouse dies?
(Learn more about when you owe your spouse’s debts in a community property state .) If you cosigned or were otherwise jointly liable with the decedent on a credit card, you are still on the hook for that debt. The death of your cosigner does not eliminate your obligation to pay the debt.
Who is liable for credit card debt in a marriage?
Most states—called common law states—use common law rules when determining who’s liable for a particular debt in a marriage. In common law states, you’re usually only liable for credit card debt if the obligation is in your name.
Can a creditor pursue you for your husband’s debts?
They would be able to pursue you for your husband’s debts only if the loans were in your joint names, which I am assuming they are not. However, if your husband’s name appears on your credit file you must be financially connected in some way, as people can only be linked on a credit file if there is evidence of joint financial activity.
What happens when credit card debt is charged off?
A charged off debt can lead to harassing phone calls, garnished wages, and a major drop in your credit score. According to the Federal Reserve, consumer loans had a charge-off rate of around 2.3% in the final quarter of 2019. Credit card debt was more likely to be charged off than other forms of debt.
(Learn more about when you owe your spouse’s debts in a community property state .) If you cosigned or were otherwise jointly liable with the decedent on a credit card, you are still on the hook for that debt. The death of your cosigner does not eliminate your obligation to pay the debt.
Most states—called common law states—use common law rules when determining who’s liable for a particular debt in a marriage. In common law states, you’re usually only liable for credit card debt if the obligation is in your name.
Can a credit card company contact a decedent?
Credit card companies and debt collectors are allowed to contact a decedent’s spouse, administrator or executor of the estate, guardian, or any other person with authority to pay the decedent’s debts from his or her estate.
What happens to credit card debt when a cosigner dies?
The death of your cosigner does not eliminate your obligation to pay the debt. As a result, if the decedent’s estate did not have enough assets to pay off the debt, the credit card company can still pursue you to collect it. Who Are Debt Collectors Allowed to Contact After a Person Dies?