Who Is Responsible For Debts Of The Deceased-9c8836

Debt-Relief There are many repercussions that can ensue from the death of a family member but there is one that can really cut deeply into the sensitivities of survivors. What can create such emotional, and possibly family, turmoil? A debt collector calls seeking the payment of a debt after the death of the deceased. This is not an uncommon occurrence and there are more than a few attorneys as well as debt collection agencies that specialize in this practice. Here are a few things that you should know about the responsibility for debts owed by a person who has died. Role of the executor If the deceased has prepared and signed a will, an executor is usually named. This will be the person who is legally responsible for following the deceased stated wishes as well as complying with all relevant laws. The executor will use the assets of the deceased’s estate to satisfy any debts. Any liquid assets that are available will be used and it may be necessary to sell real or personal property to get additional money to pay off the debts. An executor must notify all known creditors about the death of the debtor. This is required even when the estate does not have the financial wherewithal to pay off any of the debts. Generally, no family member, with the exception of a surviving spouse, is responsible for paying any debt of the decedent. However, a situation may arise where property that is bequeathed was used as collateral for a debt. In such a case, the person who has inherited the property is now saddled with the debt. If a married individual dies intestate, meaning without a will, it may be possible that the surviving spouse will become responsible for the debts. Who gets paid first? If there is money in the estate’s till, there is an established pecking order regarding who gets paid first, second and so on. The United States government and state governments are at the head of the line. The question then becomes whether or not there is a will. If there is one, the instructions of the deceased, if lawful, must be followed. From that point, the order of priority is secured debts, liens, judgments and unsecured debts. Federal law imposes a very serious burden on executors and administrators of estates, a burden that demands a prudent person in this capacity exercise his or her responsibilities with extreme caution. Should a person acting as an executor or administrator pay any debts prior to paying debts due to the U.S. government, that person will become personally liable for any debts to the government if there is insufficient money left in the estate to pay the amount. A debt collector calls So, a family member has died and you receive a phone call from a debt collection agency. What can you expect and what must you do? Invariably, a debt collector will never volunteer that a family member (with the possible exception of a surviving spouse) is not legally responsible for paying the debt at issue. However, if asked this question, the debt collector must be forthcoming and state there is no legal obligation to pay the debt. Otherwise, the debt collector may be running afoul of the Fair Debt Collection Practices Act. If a family member chooses to make any payment on a debt after death of the person, the standard advice is not to negotiate the amount or terms of repayment. Decide on your own. In addition, a family member should demand a written statement of settlement regarding the debt with the appropriate details included. The creditor will then be unable to sell any unpaid debt or make any further attempt to collect. When a bereaved family is confronted with the matter of such debts, family members may not be sufficiently prepared, emotionally or otherwise, to handle it. Seeking professional assistance may be the best way to proceed. About the Author: They might additionally not need the same toughness as additional panels and can probably need replacing earlier, which affects the entire cost of your system as it ages. Here … A franking machine will handle a business’s mail requirements in an expense effective and time economy manner. My website: frankingmachine 相关的主题文章: