Question
what happens to debt when you die?
Interesting Question? 
(4) 
(6)
(4) (6)
Answers (1)
6th Nov 2009 by Tom Lindmark
When you die, your debt doesn't go away. Your estate is liable for any outstanding debt and is subject to lawsuit for collection if your heirs don't pay it. Likewise, the assets securing any debt like a mortgage on the house render the asset subject to seizure if the debt isn't paid. Just to make it worse, any obligations for taxes payable to the IRS or a state are also subject to collection from the estate. If you ignore these debts and distribute the proceeds of an estate to the heirs, those owed money by the deceased are permitted to sue the heirs for collection of the debt. As you can see, even when you kick the bucket, you can't get away from the bills you owe.
When you die, your debt doesn't go away. Your estate is liable for any outstanding debt and is subject to lawsuit for collection if your heirs don't pay it. Likewise, the assets securing any debt like a mortgage on the house render the asset subject to seizure if the debt isn't paid. Just to make it worse, any obligations for taxes payable to the IRS or a state are also subject to collection from the estate. If you ignore these debts and distribute the proceeds of an estate to the heirs, those owed money by the deceased are permitted to sue the heirs for collection of the debt. As you can see, even when you kick the bucket, you can't get away from the bills you owe.
Like This Answer? (0) (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com
(0) (0)
30th Oct 2009 In Retirement
1 Answers | 93 Views
Subjects: debt when you die,