Debt After a Debtor’s Death
After a debtor passes away, there are some serious financial concerns that can affect those left behind. This debt may be substantial, passing from the deceased to a co-signer or spouse. Although debtors may pursue bankruptcy if they are facing a terminal illness or other condition that could threaten their lives in order to clear these debts, others may not be fortunate enough to provide such solutions for their family or friends.
For many Americans, accruing debt occurs over a lengthy period of time. However, others may see their financial fortunes ruined by a single tragic event. If you have found yourself with an insurmountable debt load, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 to discuss your debt situation with a skilled and experienced attorney today.
Some debtors may not understand how debts may be passed from person to person. Some hold a belief that debt does not transfer after death, meaning that one person’s credit cards are wiped clean after their passing. Others maintain that debt may be dealt with against a personal estate only, not being shared by anyone else. However, neither one of these can be assumed to be correct. Instead, the following can occur:
Co-signers may be expected to pick up the debt
Secured debts, including cars and houses, can be repossessed
Joint credit cards are passed to the survivor
Debts may be paid from an estate plan
Generally speaking, outstanding debt that is at all shared with another individual may leave that individual legally responsible in case of their partner’s death. This can especially occur between spouses, business partners, friends, and family members.
If you are facing overwhelming debt inherited from another individual, bankruptcy may be an invaluable solution to these issues. To learn more about your options along the process, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000.