Balances on charge cards and credit cards don't go away when someone dies. Sometimes companies aren't as patient as it seems they should be in such a difficult situation. The executor of the estate, or an attorney, if you've secured one, should be the main point of contact while you're sorting out who is responsible for paying the debt.
Executor
Generally, the deceased person's estate is responsible for paying any debt. If the deceased has an outstanding balance on a charge card, the executor of the estate pays it from the estate's assets. This process can take some time; submit a death certificate to the charge card or credit card company so they're aware of the death, and why payment is delayed. If there aren't enough funds in the estate, then the deceased's spouse may be responsible for paying the card, particularly if the deceased lived in a community property state.
Spousal Responsibility
Widows and widowers are responsible for a deceased spouse's debts, including charge cards and credit cards, in two situations. If the deceased person's spouse cosigned the charge card or credit card application, the spouse is responsible for paying if the estate can't. If the widow has a card with her name on it, that doesn't necessarily mean she cosigned; she may be an authorized user. If there's uncertainty as to who cosigned, contact the charge card or credit card company.
A widow is also responsible if she lives in a community property state, and if the charge card or credit card was taken out during her marriage. Washington, Texas, Arizona, California, New Mexico, Nevada, Idaho, Wisconsin and Louisiana are all community property states. In Alaska, couples can choose to use community property law.
Other Cosigners
Anyone else who cosigned the charge card or credit card would be responsible for paying the debt, if it wasn't covered by the estate. Even if a parent was cosigning for a card for a college student, for example, the college student would be legally responsible if the parent died and the estate couldn't cover the debt. If the person responsible for paying the debt can't afford to pay, he should contact the charge card company to set up a repayment plan that's affordable.
Fair Debt Collection Practices Act
Charge card or credit card debt that isn't paid in a timely manner may be sold to a collection agency, regardless of the circumstances. The Fair Debt Collection Practices Act protects consumers from being harassed by collection agencies. Collection agencies can only speak to those responsible for the debt. It can also speak to family members to determine who is responsible for the debt, but that's the extent of their contact. If you're responsible for charge card debt after someone's death, and you're receiving collections calls, you can write the collection agency and request them to stop calling.
0 comments:
Post a Comment