I’ve asked for advice here before about my mom, who had a stroke, and I found out she was around $100,000 in debt mostly from a car (which I surrendered) and credit cards. I believe all the debt is solely in her name, not her husband’s. I was her guardian since she was incapacitated, but now she’s passed away.
Debt collectors are reaching out to me, but there’s no money left. Her husband still lives in the house, and there aren’t any other assets except a small MLM business that pays him about $2,500 a month. Will they try to go after that? If so, how does that work?
If she’s passed away, that’s not your concern. Refrain from making any payments, or else they will pursue you.
This is the response. Sadly, my father passed away last year. I took care to ignore the debt, and as a result, it has practically vanished. I truly apologize for your loss.
The estate is liable for the debt. This implies that they have the right to pursue any assets she has, even joint ones. Therefore, the spouse can be held accountable, the house might be seized, and any further income might perhaps be garnished. Prior to any bequest, the estate would settle the obligation if she was unmarried or widowed at the time of death. The remaining debt would pass away with her if the estate ran out of money. You should definitely get in touch with a lawyer because she has a surviving spouse who is dependent on those assets.
That’s not the case in every state. For example, in Michigan, things work differently. Unsecured debt, like credit cards and personal loans, typically dies with the person. Creditors can only go after assets that go through probate.
When my mom passed, we discovered she had nearly $80,000 in unsecured debt, including credit cards and personal loans. It was a surprise to us. She even had a separate bank account where her pension was deposited, and my dad wasn’t listed on it.
My brother, acting as the executor, reached out to the creditors, sent them the death certificate, and asked them to close the accounts.
Their house, worth $350,000, is paid off, and my dad still lives there.
My mom also had a lawsuit from a car accident two years before her death. The lawyers told us that because she was going 5 miles over the speed limit, she was partially at fault, and any award would be taken by their fees and her creditors since the money would go through probate.
We ended up dropping the lawsuit, and the creditors closed the accounts.
If your parents still owe on their house, the mortgage company might call the loan due if your dad’s income isn’t enough to guarantee it. Creditors can go after any financial earnings that don’t list your dad as the beneficiary.
My dad’s wife informed each and every creditor of his passing when he passed away in Florida. A copy of the death certificate can be needed by some. Because they were solely in his name, they were all written off and she was released from liability. His balance was even written off by the hospital. They lacked a house. Everything was just cleared in his name.
Inform the collection agency that she has passed away and offer to send them a copy of the death certificate when they call. Afterward, if they request one, send one to them. However, there can be an issue if the house is registered in your mother’s name. Whether they truly intend to sue the estate and whether you reside in a common property state will determine this.
I don’t believe any of it is legally your fault. They attempted to collect money from my mom after her father passed away, but she never paid them anything.
You can make fun of them. Ask them “did I sign for something?” if they ever ask YOU to pay the money. or end the call.
I’m sorry you had to go through this and lost your mother.
Ask them for the correct address to send the death certificate to when they call. A FAX number might exist (you can email to an FAX with some programs). That ought to cut down on calls for collections. Additionally, request the correct address to be used for probate notices.
Either you or her spouse should get in touch with a local probate counsel if her husband wants the house. The addresses of the creditors will be required by that lawyer.