Losing a loved one is a traumatic experience, but it’s sometimes the start of being harassed by creditors. If your loved one passed away and had open credit accounts, those creditors will likely want their money; however, there are strict limits to what they can do and how they can attempt to get what’s due.
With very few exceptions, the creditors must turn to the estate to receive payment. Debt payments are typically handled before the estate is divided among heirs or beneficiaries. The administrator of the estate is the one who’s responsible for using funds from the estate to make those payments.
What happens if there’s nothing in the estate?
If there’s nothing in the estate, it’s insolvent. This means that the creditors may not receive payment for the accounts. The exception to this is if the account was jointly held or if there was a co-signer. In those cases, the joint account holder or co-signer would be liable for the debt.
What happens if debt collectors contact you about the decedent’s debts?
Unless you’re the estate administrator, joint account holder or co-signer, debt collectors shouldn’t try to collect money from you. If they contact you, provide them with the contact information for the administrator, but don’t give them any of your personal information.
Dealing with these situations can be frustrating, especially if you’re dealing with the emotions that come with losing someone you love. Having someone on your side who can assist with these matters may be beneficial.