What Happens to Credit Card Debt After Death in Massachusetts?

When you incur a debt on you credit cards, you make a promise to the credit card issuer that you'll eventually repay. However, if you die before repaying it, that debt may not get repaid at all. What happens to your credit card debt in Massachusetts after you die depends on several key factors, though the process is largely the same as in most other states. You should always consult an attorney if you need legal advice about your debts and what happens to them after death.

Card Agreement

When you enter into a credit card agreement, you agree to pay back any debts you incur by using the credit card. The creditor, on the other hand, does not ask or require you to give it a security interest in your property. A security interest is essentially collateral, such as your agreeing to use your car as collateral when you use a car loan to buy it. To recover the debt, the creditor has to get you to pay it back voluntarily or sue you if you don't pay.

Probate Estates

After you die, the property you owned in life is collectively known as your estate, which consists not only of your assets, such as your car, bank accounts or your home, but also your debts, such as your mortgage or unpaid bills. When you die and leave behind a credit card debt, the creditor must try to collect the unpaid debt from your estate. This happens after your estate goes before a Massachusetts probate court and the estate administer sends notice to any creditors of the opening of the estate. Once this occurs, the creditor has to file an estate claim if he wants to recover the money.

Heir Responsibility

The people who stand to inherit property from a decedent are generally known as heirs. These heirs are not responsible for the debts of the decedent. In Massachusetts, the probate process is overseen by an executor, a person who determines what the heirs are entitled to receive. The executor is also responsible for using estate assets to pay estate debts. If there are not enough assets to pay the debts, the estate is insolvent and the heirs typically get nothing. In any case, though, the heirs cannot be made to pay for the debts of the decedent.

Joint Accounts

One key exception exists to credit card debt after death, which happens when there is more than one account holder. If you and your spouse, for example, get a joint credit card and your spouse dies, you are still liable for the debt. The estate process applies only to assets or debts the decedent owned individually. A joint account holder is still responsible for joint debts even if the other account holder dies.