Credit card debt when I die

constance_1921

Hi. What happens to my credit card debts when I die as I have no property or savings to pay them off. Will my daughter be responsible for settling them? Thanks

chattychappy

No she won't.

But there are situations in which if you take advantage of this, then money could be clawed back from those involved or who benefited. Pretty rare I'd imagine, unless the amounts are significant or it was very overt (eg your daughter had a card on your account and was spending like crazy whilst you're on your death bed).

thenudeone

Debts can't pass to anyone else on you death, but your assets (including your share of any joint assets) must be used to pay off all your debts before any can be distributed to anyone else.

If you have no assets, the card company will just have to write it off.

blacksta

Hope you are not planning on leaving us anytime soon.

lisyloo

If you have no assets then the credit card company will write them off.
Indeed a paupers funeral (very basic) can be provided by the local authority.

But be aware that any "assets" you have includes things like TV, jewelry, watches, car, laptop etc.
I'm not saying you aren't a genuine case but I am quite amazed at the number of people who claim they have absolutely nothing, although I guess they could all be tramps who access the internet from the local library.

Have you ever put any money into a private pension?
There might be a lump sum payout from that.
If there was any money e.g. unclaimed pension fund, then the debts would be deducted from the assets and funeral costs before your beneficiaries received anything.

Essentially no-one else is responsible for youre debts or ultimately your funeral costs. Although any money you owe would be deducted before they inherit.

Buzby

Of course, they'll also ruin your credit file, but I don't see that as a deterrent! :-)

blacksta

Buzby wrote: »

Of course, they'll also ruin your credit file, but I don't see that as a deterrent! :-)

just in case he suddenly reappears back from death

thenudeone

blacksta wrote: »

just in case he suddenly reappears back from death

Maybe he's a canoeist?