What happens to credit card debt after a spouse dies?

If a spouse dies and a credit card company from a non-joint account tries to force the sale of a family home to pay off a debt, the surviving spouse should contact a lawyer. If there’s not enough money in the deceased spouse’s estate to pay off his or her credit card debt, the credit card company usually writes off the debt.

Who is responsible for paying off a credit card debt?

If there was a co-signer on a loan, the co-signer owes the debt. If there is a joint account holder on a credit card, the joint account holder owes the debt. A joint account holder is different from an “authorized user.”

Who is responsible for paying off a deceased spouse’s debt?

If you were a cosigner or otherwise legally obligated for your deceased spouse’s debts. If you live in a community property state, you may be responsible for paying the debt with community assets, but you should consult an attorney to understand your rights and obligations.

Can a debt collector contact a deceased spouse?

It depends. Here is when you can be contacted: A debt collector is allowed to contact the deceased person’s spouse looking for the person authorized to pay the deceased spouse’s debts, such as the executor or administrator of the estate.

Who is liable for credit card debt in a marriage?

Most states—called common law states—use common law rules when determining who’s liable for a particular debt in a marriage. In common law states, you’re usually only liable for credit card debt if the obligation is in your name.

Who is responsible for paying off credit card debt?

In almost all other cases, the deceased spouse’s estate is responsible for paying all debts, including credit card debts. The executor of the deceased’s estate is in charge of paying off debts, but is not personally liable to pay them.

Can a spouse be responsible for a debt?

If state law requires a spouse to pay a particular type of debt. If state law requires the executor or administrator of the deceased person’s estate to pay an outstanding bill out of property that was jointly owned by the surviving and deceased spouse .

Who is responsible for spouses credit card debt in Ontario?

Specifically, with credit card debt, there is also the issue of being a supplementary cardholder on your spouse’s credit card account. If none of those exceptions come into play, then one spouse is not responsible for the other spouse’s debt in Ontario.

Can a spouse have a joint credit card?

Joint credit card accounts are fairly rare these days, so if you and your spouse share a credit card, it’s probably because one of you is the account holder and the other is an authorized user. Check the terms of your credit card agreement or contact the card issuer to find out.

Can a person still use a credit card after death?

If a person gives permission for someone else to use a credit card while she is alive, sometimes the authorized user assumes he or she can continue to use it after the account holder dies. Not so, says Camp. “The credit card may be in my name, and I may give my son permission to use it. But if I die, that permission does not survive my death.”

Who is liable for credit card balances after death?

If the authorized user is a spouse of the deceased, and that couple lives in Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin (all community property states), then that spouse may be held liable for any balances.

Can a credit card company collect after a cosigner dies?

The death of your cosigner does not eliminate your obligation to pay the debt. As a result, if the decedent’s estate did not have enough assets to pay off the debt, the credit card company can still pursue you to collect it.

Can a credit card company contact a decedent?

Credit card companies and debt collectors are allowed to contact a decedent’s spouse, administrator or executor of the estate, guardian, or any other person with authority to pay the decedent’s debts from his or her estate.