What to Do When Parents Die With Unsecured Credit Card Debt in Tennessee?

In Tennessee, a probate court case must be opened when a person passes away, so that the decedent's estate can be settled and all debts paid. Tennessee probate cases take an average of about one year to settle in full, and a number of specific steps must be taken during that time frame. A decedent's children and heirs are not responsible for his debt, his estate pays off all outstanding debts instead.

Open a Probate Case

Open a probate case with the appropriate court in the county where your parents lived or owned their home. Probate processes are designed to ensure that all assets are accounted for, all debts are paid in full according to the law and all terms of the will are carried out in full. The probate process is also how property is legally transferred in title or deed to an heir or beneficiary.

Administrator

An estate executor or personal administrator is sometimes named by the decedent before her death. If one has not been selected or there is more than one person who wants to serve, the probate judge will make the assignment or selection. In Tennessee, an estate executor has many responsibilities and duties and can be held legally and financially liable if he makes mistakes in handling the estate closure. If you are contacted about your parent's credit card debt, direct the creditor to the estate administrator for handling.

Notify Creditors

One of the estate administrator's primary duties is to notify all interested parties of the decedent's passing. She must immediately post death notices in local Tennessee newspapers and send written notices to all creditors within 60 days of being appointed. Credit card debt must be claimed against the estate along with any other types of secured or unsecured debts.

Liquidate Assets

After the allowed waiting period for all creditors to list their claims against the estate, the executor may liquidate assets in order to pay all debts in full. If need be, the executor will sell real and personal property such as vehicles or collectibles in order to cover all verified debts against the estate. When there are not enough estate assets to fully cover all outstanding debts, debts must be paid according to a priority order designated by law. Creditors must write off all or part of any debt that remains unpaid once all funds and assets are exhausted.