Credit Card Debt after Death: Do you have credit card debt and you’re wondering what’s going to happen to the debt when you die? If you die with debt from an outstanding credit card, what happens to that? If and from whom it will be paid, depends on many factors. This article will address any questions you may have.
Who is responsible for Credit Card Debt after Death?
Usually, your estate will be responsible for paying off any remaining debts that you have when you die. If the credit card is in a joint account, the remaining outstanding balance will be payable to the other primary cardholders.
If the debt of the credit card is in the name of the deceased cardholder only, the liability shall be paid out of the estate of the deceased. When there isn’t enough money to cover the debt’s expense, the creditor will either give you a payment plan or write off the debt.
Check Out the General Key exceptions where you might need to Pay the Debt
How to Deal with Credit Card Debt if a spouse or relative passes away?
Below are some simple steps you can take to deal with a deceased family member’s finances.
Step 1. Notify your Bank
Financial institutions have deceased estate and bereavement specialists you can call to help you work through a difficult process.
Step 2. Give the required Documents to your Bank
You may be asked to include the deceased’s particulars, as well as your personal information, so that the bank or financial institution may provide adequate assistance depending on your specific circumstances. The financial institution may also wish to see and will see a certified copy of the death certificate. The reporting specifications vary depending on whether you can supply them or not.
Step 3. Bank’s Assessment
The financial institution will look into the assets of the deceased here. They will look at current debts and properties, including credit card debts outstanding and savings account balances. If outstanding debts are accrued, the bank must try to balance the debt with available funds from other accounts.
Step 4. Release of Funds
If enough funds are available to cover the credit card debt of the deceased, the bank will first pay the liability and release any leftover funds to the beneficiaries.
If the assets of the deceased are inferior to the sum due, the financial institution will contact you to arrange a payment plan.
Find Out Which Assets Are Protected From Creditors?
We hope this article was useful and educative, do well to share these messages with friends and loved ones. If you have a question, kindly drop your comments below.
For More Details, Click Here