They say that nothing is certain in life except death and taxes. In today’s financial climate, it would be reasonable to add consumer debt to the financial obligations that are as inescapable as death. A relentless optimist, a veritable Pangloss who looks for a silver lining in everything, would say that, at least, the two are mutually exclusive. If you are still obligated to pay your debts, it means that you are still alive. Almost every kind of debt has a statute of limitations, a deadline by which the law requires the creditor to cut their losses and abandon efforts to collect payment on the debt. Even where there is no specific amount of time listed as a statute of limitations, when the borrower dies, the debt obligation’s days are numbered, too. If creditors are bothering you about debts owed by a deceased family member, know that the law is on your side and contact an Oakland lawsuits, collections, and creditor harassment lawyer.
Is it Possible to Inherit Debt?
The right of creditors to collect payment on debts owed by a recently deceased person is one of the main reasons that probate court exists. The personal representative of the estate must notify known creditors that the estate is open for probate and that this is their chance to claim repayment of outstanding debts. The personal representative must also publish notices in the local newspaper to this effect; since most newspapers have an online edition these days, it is possible for creditors in cities other than the one where the probate proceedings are taking place to see the notices.
When the creditors contact the probate court, the personal representative must settle the debts. Sometimes, this means that the estate must sell assets to satisfy the debts, and sometimes, it means that the creditors must accept a lower settlement amount. In either case, it can mean that the beneficiaries of the estate receive less money than the decedent owned at the time of their death, and in some cases, there is nothing left at all for them to inherit.
Once the estate settles, creditors have lost their chance to collect payment on the debt. If a creditor contacts you about money owed by someone whose estate has already been settled, you have the right to tell them to get lost. If a creditor wants to reopen an estate because of an unpaid debt, their only choice is to petition the court to reopen the estate.
The only way you can inherit a debt is if you owe it jointly with a family member, such as if you co-signed for it. Likewise, if a couple has both spouse’s names on a home mortgage, and one spouse dies, the surviving spouse must continue to make mortgage payments.
Contact the Law Office of Melanie Tavare About Debt Incurred by Deceased Family Members
A debt relief lawyer can help you get relief from debts you incurred jointly with a deceased family member. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
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