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 company2. The debt will be passed on and the responsibility of a survivor
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.
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.