When a person dies, debt collectors may try to contact his spouse or other close relatives to collect his debt. Although debt collectors may appear sympathetic, their behavior is illegal. In most states, including Michigan, spouses and other relatives are only responsible for debts that were taken out in their name, not in their deceased relative's name. The executor of the estate pays the estate's debts using its assets. Refer all collections calls to this person.
No Community Property
In a community property state, all debts incurred during marriage belong to both marriage partners, and if one partner dies, the other partner automatically assumes these debts. Michigan is not a community property state. Therefore, if your spouse brought debt into your marriage, that debt belongs to him unless your name is also on the account. Any credit cards that were solely in his name do not transfer to you at his death.
Joint Accounts
If you and your spouse had any joint credit card accounts, you are legally liable for the debts after your spouse's death. Contact these credit card companies to inform them of her death and have her name removed from the card. You must pay off any balance on these cards. If you do not make minimum payments, you will go into default. A default is noted on your credit report and will negatively affect your credit score.
Non-Joint Accounts
Even if you were listed as an authorized user on your late spouse's credit account, you are not liable for his debts. Contact any creditors with whom your spouse had accounts to inform them of the death, and ask them to close the accounts. Creditors cannot contact you or your spouse's other heirs to collect credit card debt in Michigan. While the estate is being settled, refer creditors to the estate. After settlement of the estate, creditors cannot collect credit card debt any longer.
Settling the Estate
The executor of your spouse's estate must use the estate's assets to pay all debts on the estate. However, credit card debt is a low priority debt in Michigan. The executor must first pay taxes, secured debts and any money the estate owes to the deceased person's employees. If there is not enough money left in the estate after paying these debts, creditors must write off the debt as a loss and close the account.
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