Surviving Spouse & Credit Card Debt

The loss of a spouse is an emotionally wrenching experience. The last thing a grieving widow or widower needs is to be mercilessly hounded over the credit card debt of the deceased. If you find yourself in this situation, take solace in the fact that laws protect you and your finances from your spouse's creditors.

Responsibility

You are not legally responsible for any debt that you did not sign or co-sign for originally. Being an authorized user on an account does not make the debt yours. Unlike assets, debts are not transferred to the next of kin when a person dies. The creditor's only option is to write off the debt as a loss.

Notification

As soon as you are able, notify all creditors in writing of the passing of your spouse. Include a copy of the death certificate and a reminder that the Fair Debt Collection Practices Act forbids the sale or transfer of a deceased person's debt. Send all correspondence certified mail and keep the receipt when it arrives. Do not include a signature on any documents. Sadly, in situations like these, signatures have a way of turning up on paperwork that legally transfers the debt to you.

Joint Accounts

When you share a joint credit card account with your spouse, both of you are equally responsible for the repayment of the debt. In the event that one of you defaults or dies, the remaining account holder is still legally liable for any balance remaining on the card and must continue to make payments until the debt is paid. Not doing so puts you at risk for negative credit report entries and possibly a lawsuit.

Collection Calls

After a person dies, his credit card debt will sometimes end up in collections even if the original creditor was notified of the death. If you are receiving collection calls for a deceased spouse, you should immediately send the collection agency a cease and desist letter prohibiting them from contacting you and your family. Type your name (do not sign), include a death certificate and mail your demand certified mail.

The Estate

If your spouse did not have a will, you run the risk of your property being "frozen" by the probate courts to allow creditors to make claims against it. If you and your spouse owned your home and had a "right of survivorship" clause in the deed, the property will pass directly to you with no one else able to make any claims on the home.

Warning

Monitor your credit reports for new trade lines. Although it is illegal to do so, some creditors will transfer your deceased spouse's debt into your name. They will then attempt to pursue you for the balance. You can file a civil lawsuit against any creditor who attempts to transfer a debt to you without your permission.