If Somebody Moves During Debt, Who'd Be Legally Accountable For The Debt?

[KyndMryn]

Does a loss is taken by the bank? Naturally they'd get what ever belongings may well be obtainable, like the home or automobiles, but what if this did not address the debt?I am sure if the deceased had a spouse, they'd be held accountable for the debt, but lets say there was no spouse, but there have been four young children who've been transferred out for decades. Could they actually outcome in the debt of the parents following their passing?I am speaking debt, not funeral or burial costs. These are not section and expenses of a preceding debt.

[Eochaidh]

Actually, the IRS gets first dibs. The creditors get to fight over the bones.

[Norval]

PamPerdue said: 2 JBENZ has it on the nose. The creditors get first claim on the estate, so nobody inherits anything until the creditors are paid off. The executor of the estate is responsible for making sure of that, but it's not his/her money on the line, only the estate itself.If the estate is sold off and it's not enough to cover the debt, the creditors are out of luck. If that's a bank, then yeah, the bank takes the loss. This is called a "writedown".If there are multiple creditors(the mortgage company, the gas company, credit cards, etc) there are various legal procedures for figuring out who gets first dibs. 64 months ago

[Wright]

IchtheosaurusRex replied to post #2: 3 Actually, the IRS gets first dibs. The creditors get to fight over the bones. 64 months ago

[Claec]

The deceased's estate When a person dies, all of his assets and liabilities become the property of his estate, which is a legal entity that exists separately from the deceased heirs and executors.  If the deceased has a will, a probate court appoints an executor, which is usually someone named by the deceased, to take care of the disbursement of his assets.  Even if the person dies without a will and has no known heirs, his estate is subject to probate.   The debts of a deceased person fall on the estate.  As a rule, any debts the deceased has must be paid before the remaining assets, if any, are passed on the the deceased?s hiers.  Taxes owed are usually the first thing to be paid, then private debts.  There are, however, certain assets that are not subject to probate, and can be paid directly to the deceased heirs.  These include assets in IRAs and other retirement funds(provided the deceased has named a beneficiary), proceeds from life insurance policies, and any assets held in common with a living person who has right of survivorship. Community property, like the house a deceased lives in with his spouse, is an example of this kind of asset.   As a rule, the deceased?s hiers cannot be held responible for his debts.  If a person dies owing, say, $50,000 in personal loans and credit cards, and there is not enough money in the estate to pay them, the deceased?s creditors would have to absorb the loss.  This is true even if proceeds from life insurance policies or retirement funds have been paid out to the deceased?s heirs.  However, if the deceased held property in common with a living person, that property could still be attached by the deceased?s creditors.   IchtheosaurusRex Sources: LOMA http://www.loma.org IchtheosaurusRex 64 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

[Wolfrik]

JBENZ said: 1 Nobody is liable on a debt unless they agree to be responsible. If there is only one person obligated and he/she dies, nobody is liable. The creditor may file a claim against the dead person's estate and may get paid out of that but the debt doesn't pass to a spouse or child or any other heir unless the agreed to be liable for it. 64 months ago

[Ocunnowhurst]

Nobody is liable on a debt unless they agree to be responsible. If there is only one person obligated and he/she dies, nobody is liable. The creditor may file a claim against the dead person's estate and may get paid out of that but the debt doesn't pass to a spouse or child or any other heir unless the agreed to be liable for it.

[Adar]

When a person dies, all of his assets and liabilities become the property of his estate, which is a legal entity that exists separately from the deceased heirs and executors.  If the deceased has a will, a probate court appoints an executor, which is usually someone named by the deceased, to take care of the disbursement of his assets.  Even if the person dies without a will and has no known heirs, his estate is subject to probate.   The debts of a deceased person fall on the estate.  As a rule, any debts the deceased has must be paid before the remaining assets, if any, are passed on the the deceased?s hiers.  Taxes owed are usually the first thing to be paid, then private debts.  There are, however, certain assets that are not subject to probate, and can be paid directly to the deceased heirs.  These include assets in IRAs and other retirement funds(provided the deceased has named a beneficiary), proceeds from life insurance policies, and any assets held in common with a living person who has right of survivorship. Community property, like the house a deceased lives in with his spouse, is an example of this kind of asset.   As a rule, the deceased?s hiers cannot be held responible for his debts.  If a person dies owing, say, $50,000 in personal loans and credit cards, and there is not enough money in the estate to pay them, the deceased?s creditors would have to absorb the loss.  This is true even if proceeds from life insurance policies or retirement funds have been paid out to the deceased?s heirs.  However, if the deceased held property in common with a living person, that property could still be attached by the deceased?s creditors.   IchtheosaurusRex

[Cory]

JBENZ has it on the nose. The creditors get first claim on the estate, so nobody inherits anything until the creditors are paid off. The executor of the estate is responsible for making sure of that, but it's not his/her money on the line, only the estate itself.If the estate is sold off and it's not enough to cover the debt, the creditors are out of luck. If that's a bank, then yeah, the bank takes the loss. This is called a "writedown".If there are multiple creditors(the mortgage company, the gas company, credit cards, etc) there are various legal procedures for figuring out who gets first dibs.