What Happens to Debt After Death

Debts typically don’t just disappear after the debtors are deceased, nor are creditors typically inclined to let outstanding balances remain unpaid. At this point, debts are transferred to the estate and paid off in the probate process, at which point the deceased person’s assets and property are put toward paying the remaining balances. The responsibility for selling assets and paying debts falls to the estate executors.

Taking on Parents’ Credit Card Debts

Unless you co-signed on a parent’s credit card, you will not likely be responsible for paying off their credit card debts with your own finances. However, be advised that if you are an authorized user of their credit card, creditors may still come after you to request repayment. Your personal credit score(s) may also suffer if you are an authorized user of your deceased parent’s credit card and their debt remains outstanding after their death.

If your parent’s credit card debt cannot be fully paid off after all their assets and property have been sold, you may have a problem on your hands. It is imperative to protect yourself and talk to an experienced probate lawyer right away if you fear having to take on a parent’s credit card debt.