Personal property is not collateral for credit card debt. Credit card debt is handled in married couples based on whether or not they live in a community property state. Credit card debt must be paid before family members can inherit remaining property left by the deceased.
Property Rights in Marriage
In community property states, credit card debt acquired during marriage belongs equally to both spouses. In non-community property states, credit card debt belongs to the person who signed the application. The only exception is if the application stated that both spouses are responsible.
Property Rights in Cohabitation
A cohabiting couple does not have joint credit card debt unless both partners have a joint credit card. Otherwise, credit card debt only belongs to the person who took out the loan.
Credit Card and Inheritance Property Rights
The estate of the deceased is liable for the credit card debt acquired. If married, the property they owed and the debt they held is passed on to the surviving spouse. The executor has the right to sell property to raise money to pay off credit card debt. Heirs who own property have no liability for the deceased's debts.
Property Rights and Credit Card Debt Collections
Credit card collectors cannot repossess the property purchased with the credit card. Credit card collectors can get a judgment. This can result in garnishment of wages or liens against existing property.
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