Question : Can credit card companies sue an estate of someone who has died to collect outstanding balances?
My father in-law has incurable cancer, and outstanding credit card debt of about $55K. Can the credit card companies sue his estate or children to collect the outstanding balances on his accounts once he passes away?
- asked by artis
All Answers:
Answer #1
They'll go after the estate. As will all hisother creditors. If there's any money left, thenit will be split up per the will.
- answered by sporregar
Answer #2
All creditors have the right to file a claim inthe probate of a deceased person. They can not suethe family unless the debtor has transferredproperty to them for the purpose of cheatingcreditors. It may seem cold, but if he hassignificant assets now is the time to speak to anattorney about estate planning before it is toolate.
- answered by wartz
Answer #3
Creditors usually can collect from the estate ofthe deceased, I was a beneficiary to a will(Wisconsin), and all the bills and outstandingbalances had to be paid before any of us weregiven anything. When my M-I-L passed away lastyear, my F-I-L, said that there could be no"disposal" of her assets for forty-fivedays(Arizona). Check the laws in your area.I amsorry for your family's loss.
- answered by mysticalviking
Answer #4
I just settled an estate w/ $50 G in debt, mostlycredit cards and yes it is the legal right ofcreditors to sue the estate and I was fortunate tobargain with some of the debtors to settle forless, before the court ordered full payment. Maybeyou can do something to settle with them beforethe court order. Good luck.
- answered by Dianne m
Answer #5
Yes. Though most do not. Provide a deathcertificiate to each of the credit card companieswhen the time comes. Most credit card agreementshave a successors and assignees clause that bindsthe estate and/or children etc to pay. I workedfor a collection law firm that handled most of thebig major credit card companies. Usually a deathcert. will end the matter.
- answered by Toodeemo
Answer #6
Most state laws require that a will make provisionfor the payment of lawful debts, or it is notvalid.Giving away your assets so that you have nomeans to pay the debts is called "fraudulenttransfer" if you are dieing or not. Creditors canthen sue the current holders up to the value ofthe assets transferred.
- answered by Bob
Answer #7
The Lawyer of the Estate or the Executor, can askfor validation to make sure the debts are not pastany Statuteof Limitations. ANYONE yourFather-In-Law can file claimsfor up to one year. They can not go after the children, it was HISdebt. make them validate the debtfirstcreditinfocenter com
- answered by Ask M
Answer #8
They can and will attach to the estate for thefull balance. If there are liquid assets now, adebt settlement company should be able to get youout for less than 1/2. When they go after theestate with ease, they will get paid in full. Check out the free evaluation form atwww.totaldebtsolutionsllc.com They havereferences who saved more than 60% on large creditcard balances. Good luck.
- answered by Nicki W
Answer #9
If there is enough money in his estate his debtshould be cleared and then the rest can go to whohe willed it to. If the estate has enough toclear or pay a portion of the credit card billsthey can and will get there money.
- answered by Kat G
Answer #10
They can go for the estate , not the childrenunless they are co owners of the credit card.
- answered by Raul21
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