Credit card debt is one of the most common types of debt Americans carry aside from their mortgage. When you pass away, your spouse, heirs or estate administrator must take on the task of informing all outstanding creditors and arranging to pay off any remaining balances. The asset value of your estate may be enough to pay off unsecured debts, but in Texas, your spouse could potentially be held liable if your estate cannot pay off the credit card balances.
Community Property State
Texas is a community property state, which means that everything owned by one person in a legal marriage is also owned by the spouse. The couple -- as a unit -- owns assets and liabilities, instead of individual ownership by husband or wife. When the husband dies, his wife is legally responsible to repay any and all debts left outstanding -- including those that were in his name only.
Joint Account Holder
In all states, including Texas, if two individuals jointly hold a credit card account, the surviving account holder is responsible for paying off the balance of the debt. If credit card debts are paid off in probate court, the joint account holder may not be required to pay the balance.
Probate Process
The probate court process assesses secured and unsecured assets owned by the deceased person and compiles a list of all outstanding debts, including mortgages, car loans and credit card accounts. If needed, the court orders liquidation of assets so that debts to pay off debts in full. If the deceased person did not have enough assets to cover all of their debts, some or all of the debts may be written off due to insolvency.
Get Professional Help
Since Texas is a community property state, the credit card balances may not be eligible for write off in probate court. Consult with a professional estate attorney or counseling center to determine what steps to take to protect your spouse from bill collectors in the event of your death.
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