What Happens to Debt when you Die | McCarthy Law
July 7, 2015

What Happens to Debt When You Die

I’m dead. My debts are buried! Right?

Nope. Dealing with the death of a close family member is a very difficult time for anyone. Dealing with their debts adds to the grief. A recent NBC news article discusses what family members should do when confronting the debts of the recently deceased.

So what happens with my debt when I am dead? In most instances family members or heirs are not responsible for the unpaid debts unless they co-signed the debts. However, the estate of the recently deceased individual is responsible for the debt. Therefore, if you are an heir to the estate you may have an interest in minimizing these debts. Additionally, items of value are added to the estate to repay debt, therefore if there are gifts you hope to inherit it is important to make a plan to deal with the debt so valuable items aren’t lost to debts.

So what do you do? A debt settlement attorney can help here. A debt settlement attorney can work with the creditors to minimize the debts and maximize the estate value for the beneficiaries. If you are experiencing a recent loss that involves debt, contact a qualified debt settlement attorney like McCarthy Law PLC today. With over 90 locations nationwide, our debt attorneys would love to offer you a free consultation.

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