How to Handle Debt From a Death

Although no one wants to leave his loved ones saddled with debt, individuals sometimes pass away unexpectedly. When this occurs, the deceased's family members must settle his financial affairs. Unless you co-signed with the deceased for a debt or the deceased individual was your spouse and you live in a community-property state, you are not responsible for paying off her debts. You are, however, obligated to inform creditors about the death and, if the deceased left behind an estate, instruct creditors where to file their claims for payment.

Instructions

1

Search through the deceased's financial records. Make a list of his creditors, their contact information and how much the deceased owed on each account.

2

Visit your state's Office of Vital Records. Request copies of the deceased's death certificate. The number of death certificates you need may vary, depending on how many creditors there are.

3

Write a letter to each of the deceased's creditors informing them of the death. Include the contact information for the attorney handling the deceased's estate if the estate is in probate. If the estate did not go to probate, include this information in your letter.

4

Send each creditor a copy of your letter and a death certificate. Send the notices to secured creditors, such as the deceased's mortgage lender, via certified or registered mail.

5

Publish a legal notice of the deceased's death in the local newspaper of the city where she lived. This notifies creditors you may not be aware of that your loved one passed away.

6

Pay the deceased's secured creditors every month until the probate court settles his estate. Lenders will repossess secured assets, such as a home or car, if they do not receive payment -- regardless of whether or not the deceased was the original borrower.