{"id":1957,"date":"2020-09-27T18:40:50","date_gmt":"2020-09-27T18:40:50","guid":{"rendered":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/?p=1957"},"modified":"2020-09-27T18:40:50","modified_gmt":"2020-09-27T18:40:50","slug":"debts-death-heres-what-really-happens-to-your-loans-when-you-die-before-paying-them-off","status":"publish","type":"post","link":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/debts-death-heres-what-really-happens-to-your-loans-when-you-die-before-paying-them-off\/","title":{"rendered":"DEBTS & DEATH: HERE\u2019S WHAT REALLY HAPPENS TO YOUR LOANS WHEN YOU DIE BEFORE PAYING THEM OFF"},"content":{"rendered":"

A loved one\u2019s death is always a difficult thing to go through for those left behind. But this ordeal is even worsened when a grieving family is left saddled with their deceased member\u2019s unpaid debts. Unfortunately, this scenario may not be too uncommon.<\/p>\n

INHERITING DEBTS<\/h2>\n
\"\"<\/p>\n

Family members are only responsible to pay their deceased loved one\u2019s debts if they co-signed on it<\/p>\n<\/div>\n

A reported\u00a073% of adults left behind outstanding debt at the time of their death. On average, the debt amounted to as much as\u00a0$61,554 when mortgage debt is included. However,\u00a0estate planning attorney\u00a0Philip J. Ruce says that relatives shouldn\u2019t be too worried about inheriting the dead\u2019s debts though there are still some cases when that happens.<\/p>\n

Since the person who died may have also left behind some assets, these could be used to pay off debt. The rest of the money, if there are any left, will be available to be inherited by surviving family members.<\/p>\n

Some debt may be passed on though if the deceased co-signed it with another person. In cases like this, the co-borrower is on the hook to pay for it.<\/p>\n

DEALING WITH\u00a0CREDIT CARD DEBT<\/h2>\n
\"\"<\/p>\n

To avoid potential problems, family members are recommended to inform credit card companies of the death<\/p>\n<\/div>\n

Credit card debt can be dealt with in a variety of ways post-death. In the absence of an estate, a co-cardholder, or co-signer, the debt dies with the person. But in cases when there is a co-cardholder, they are left to pay for the balance left behind whether or not they were the ones to make the purchases on the card.<\/p>\n

Meanwhile, other family members are advised against using a deceased person\u2019s credit card as this counts as fraud. This is also true for\u00a0authorized users<\/strong>, who knowingly continue using the card though they\u2019re aware the resulting debt won\u2019t be paid.<\/p>\n

HANDLING A DECEASED PERSON\u2019S MORTGAGE<\/h2>\n
\"\"<\/p>\n

The estate\u00a0can use other portions of the deceased\u2019s assets to pay for the house loan before the home is inherited by a beneficiary identified in the will<\/p>\n<\/div>\n

When a person dies with outstanding mortgage payments, the responsibility to continue on making the payments fall on the\u00a0co-borrower or co-signer.\u00a0They could also choose to refinance the loan to avoid being foreclosed on in case they can\u2019t afford the premium alone. The house and its mortgage then go to a beneficiary named in the deceased person\u2019s will in case there are no co-borrowers or co-signers.<\/p>\n

PRIVATE VS FEDERAL STUDENT LOAN DEBT<\/h2>\n

Federal student loan debts are usually\u00a0discharged upon the death of the borrower even if they had somebody else co-sign on it. However, surviving family members still need to\u00a0submit proof of death for the loan to be waived.<\/p>\n

Meanwhile, a student loan debt from a private lender would still need to be paid. In\u00a0community property states<\/strong>, the deceased\u2019s spouse would end up having to pay off the outstanding debts if they were gotten during the marriage.<\/p>\n","protected":false},"excerpt":{"rendered":"

A loved one\u2019s death is always a difficult thing to go through for those left behind. But this ordeal is even worsened when a grieving family is left saddled with their deceased member\u2019s unpaid debts. Unfortunately, this scenario may not be too uncommon. INHERITING DEBTS Family members are only responsible to pay their deceased loved […]<\/p>\n","protected":false},"author":1,"featured_media":1958,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[19],"tags":[],"_links":{"self":[{"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/posts\/1957"}],"collection":[{"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/comments?post=1957"}],"version-history":[{"count":1,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/posts\/1957\/revisions"}],"predecessor-version":[{"id":1964,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/posts\/1957\/revisions\/1964"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/media\/1958"}],"wp:attachment":[{"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/media?parent=1957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/categories?post=1957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/readymadewebsiteshop.com\/BusinessAndFinanceBlog\/wp-json\/wp\/v2\/tags?post=1957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}