What Happens With Your Debts When You Die? [Answered]

Do you know what will happen to your debt when you die? Some debts are forgiven while others may be passed down to heirs.  

The Most Common Types Of Debt

– Credit Card Debt – Medical Debt – Student Loans – Auto Loans – Payday Loans – Mortgages And Home Equity – Tax Debt

What Happens To Your Credit Card Debt When You Die?

If you die with credit card debt, there are two things that may happen: 1. Your debt may be forgiven and written off by the credit card company 2. The debt will be passed on and the responsibility of a survivor

What Happens To Your Medical Debt When You Die?

Generally speaking, children and heirs will not be required to pay back the outstanding medical bills of their parents. With that being said, there are a couple of instances where a child could be responsible for the medical debt of their parents.

What Happens To Your Student Loan Debt When You Die?

Student loan debt may or may not be passed on to survivors when the borrower dies. What happens to the loan depends on what type of loan was taken out and when it was established. 

What Happens To Your Auto Loan Debt When You Die?

If the auto loan has a cosigner or the vehicle was purchased in a community property state after a couple was married, the cosigner or spouse is responsible to repay the auto loan. If the loan was obtained before marriage and is only in the deceased spouse’s name, generally the surviving spouse is not held responsible for the debt.

What Happens To Your Payday Loan Debt When You Die?

Payday loan debt is very similar to credit card debt when you die. If there was not a cosigner or someone else listed as jointly responsible for the loan, then the company writes off the debt as a loss. 

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