We Can Help - Se Habla Español
Call407-680-1471

Can the debt collector make me pay my deceased parents' debt?

Paperwork-taxes-debts-papers-woman-calculator-budget.jpg

You are beginning to make funeral preparations after your father's recent passing when you start getting calls from creditors and mail from debt collectors. It seems that your parents had a significant amount of debt, and now their creditors expect the heirs to pay.

How should you react to this unpleasant and confusing situation?

You may have heard horror stories about a co-worker sued by her parents' creditors after their death, causing her to lose her inheritance. A friend might have informed you that the surviving relatives are responsible for paying the remaining debt of their deceased loved ones. Is this true? Will you have to pick up the payments on your parent's credit cards and medical bills?

The answer depends on how much of an estate your parents are leaving you and who inherits certain properties, as NerdWallet explains. After your parents' death, the executor of the estate will liquidate all or a portion of the assets to repay outstanding debt. The process works in the following manner:

  • The executor will divide any assets left over after repaying creditors amongst the beneficiaries, according to your parents' will.
  • Your father's surviving spouse or whoever inherits the house would continue making mortgage payments, or may decide to sell the home to satisfy the lender.
  • If your parents co-signed on a loan for you, the loan would continue to be your financial responsibility.

You may feel relieved to learn that although some or all of your inheritance may go to repay your parents' creditors, they can't claim you are responsible for the rest of the debt if there aren't any assets left to liquidate. If, however, your parents had a life insurance policy, debt collectors have no claim on these funds.

It may help to research your legal options if you have concerns about creditors while sorting out your late parents' estate.

No Comments

Leave a comment
Comment Information
  • Avvo Clients' Choice
  • Lawyers.com
  • ATG
  • JDSUPRA | Give Content. Get Noticed.
  • SSF | Short Sale Facilitators
Email Us For A Response

Contact Korshak & Associates

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

North Office
950 South Winter Park Drive
Suite 290
Casselberry, FL 32707

Toll Free: 800-587-2470
Phone: 407-680-1471
Casselberry Law Office Map

South Office
BY APPOINTMENT ONLY
14115 Town Loop Blvd #300
Orlando, FL 32837

Toll Free: 800-587-2470
Phone: 407-680-1471
Orlando Law Office Map

Back to Top