Who is responsible for paying the debts of a deceased relative?
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After the death of a relative, the last thing you expect grieving family is receiving calls from debt collectors demanding payment of outstanding debts of your loved one. According to what information the FTC (Federal Trade Commission, FTC), the national agency for consumer protection, usually a surviving parent has no legal obligation to pay the debts of a deceased family member . In fact, the rights of surviving family members are covered by the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from using abusive, unfair or deceptive to collect debts of a deceased relative.
As required by the FDCPA which is enforced by the FTC, a debt collector is someone who regularly collects debts are owed to third parties. This includes collection agencies, lawyers who habitually engage in collecting debts and companies that buy bad debts and then try to collect them.
The following is what the law states regarding who is responsible for the debts of a deceased relative.
Who is responsible for paying the debts of a deceased relative?
Generally, the heir of the decedent’s estate is responsible for paying their debts. But if the amount of inheritance is not sufficient to cover the debts usually remain unpaid.
Do I have a legal obligation to pay the debts of a deceased relative?
Usually you are not legally obligated to pay the debts of a deceased relative who was not her spouse. Even the liability of a spouse may be limited under state probate law. To determine if you are legally obligated to pay, talk to a lawyer specializing in inheritance law.
What should I do if a debt collector contact me regarding a debt from a deceased relative?
Give the debt collector contact information of the personal representative of the deceased, who is responsible to settle their affairs, including payment of any debt owed to the decedent’s estate. If the deceased made a will, the personal representative or executor acting as executor, if there is no will, the personal representative acts as the administrator of your estate. Do not give anyone your personal information, such as your Social Security number, date of birth, financial account numbers, unless you know who you are dealing. There are some scam artists who can read the obituaries and other legal notices, and then establish contact with relatives of the deceased posing as debt collectors. These scam artists can use their personal information to commit identity theft or other fraud.
Do I have to talk to a debt collector call me for the debts of a deceased relative?
No. But if you’re the personal representative of a deceased person or for some other reason has a legal obligation to repay the debt, you can talk to the collector to see if they can resolve the issue.
Is there anything I can do to prevent a debt collector from contacting you on the debts of a deceased relative?
Yes, if you do not want a debt collector to contact you again, write a newsletter. Make a copy of your letter, send the original by certified mail and postal pay the fee for the service of “receipt”, so you can document that the debt collector received your letter with proof of date. From the moment in which the collector receives your letter can not contact you again, with two exceptions: you can re-establish contact to tell him to stop or to inform the collector or the creditor intends to take action specific, such as filing a lawsuit. Remember that even if the collector is prohibited from returning to contact you, yet retains the right to sue to collect the debt against the heirs or the person legally responsible for the deceased.
Can debt collectors to inform someone on the debt of my deceased relative?
Except when it comes to getting the data to locate the personal representative, in general, a debt collector is not allowed to tell anyone about the debt of his family except his spouse or parent or guardian of the deceased when it comes of a minor.
