Credit Card Debt of Deceased Spouse
Author: patticaryl1
Guest
Posted: Thu Jun 10, 2004 8:02 am
Post subject: Father's spouse died, leaving unknown debt
Hope someone can help my dad. My step-mother died last week, and amongst his grief, he found over 20,000 in credit card debt he didn't know about. Apparently, she obtained credit cards he didn't know about and maxed them out. He lives on Soc. Security and a small pension. There is no way he can pay these bills. He lives in a community property state. He doesn't know yet if she used his name to obtain them, or signed his name.
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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2193
Location: Illinois
Posted: Thu Jun 10, 2004 11:54 am
Sorry to hear of the unfortunate circumstances, He will need to forward both of their personal identifying information. Name Address Social Security Number Date of Birth Copy of Drivers License Copy of Death Certificate Copy of Marriage Certificate With request to obtain copy of the spouses credit report from all 3 Credit Reporting Agencies, cost will be $9.00 each. Experian PO Box 2002 Allen TX 75013 TransUnion PO Box 1000 Chester PA 19022 Equifax PO Box 105851 Atlanta GA 30348 Once he obtains a copy of the credit reports, they will contain the name & addresses for each creditor which she had accounts established with... also it will show the designation if he was joint on any of these accounts. Once he obtains these, being that he lives in a community property state, I would suggest seeking counsel from an attorney. It might be as well that he can write a letter to each of the creditors explaining his situation, that he was unaware of the debt, and his only income is social security. Very possible that the creditors will just write off and forgive the debt, because they can't garnish from the SSI, but if he owns property, that is another matter which will definitely requires legal assistance. Best of wishes on this matter.
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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 358
Posted: Thu Jun 10, 2004 5:13 pm
If the cards are in her name only, your dad isn't responsible for any of the debt.
Quote:
Surviving spouses are not responsible for the debts incurred on a husband's or wife's solo credit card account. "The account really becomes null and void because the person who's responsible for paying is no longer living," says Catherine Williams, president of Consumer Credit Counseling Service of Greater Chicago. This is true even if the surviving spouse was an authorized user and made charges on a card issued in the husband's or wife's name.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2193
Location: Illinois
Posted: Thu Jun 10, 2004 5:20 pm
Polonius Yea I would agree, but this person stated that they lived in a community property state, that should make a difference here.
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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 738
Location: NJ
Posted: Fri Jun 11, 2004 1:47 am
Hang on a moment....is debt considered property? I'm not a lawyer, but that doesn't seem reasonable. You might want to post a msg at family-law.freeadvice.com and ask about this. I tend to believe that Polonius is right. Let us know what you find.
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Author:Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 358
Posted: Fri Jun 11, 2004 10:38 am
I live in California, a community property state. That factor doesn't come into play here. You still have to be careful. Any debt of the spouse becomes a debt payable by the estate of the spouse. In a community property state, ownership of most things acquired during the marriage is held equally between the two spouses. If the spouse's estate has assets the executor must sell them to pay the spouse's debts. The scenario here, though, is that the dad lives on a small pension and social security. Neither of those income sources can be attached to pay an independent debt of the spouse. If there are other assets involved, we haven't heard anything about them yet. And I'm assuming that the cards were opened by the stepmother in her name only without the knowledge of her husband. If they were opened as joint accounts or his signature was forged, there's going to be a problem proving he knew nothing about it. He'll probably have to sign an affidavit. In a case like this, typically the credit card companies don't pursue the issue and just write off the debt. It doesn't look good to go after penniless old folks living on fixed incomes and grieving over a newly-dead spouse. Some banks are hardheaded, though, or turn the debt over for collection to firms with no scruples whatever. Sigh.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Guest
Posted: Thu Jun 10, 2004 8:02 am
Post subject: Father's spouse died, leaving unknown debt
Hope someone can help my dad. My step-mother died last week, and amongst his grief, he found over 20,000 in credit card debt he didn't know about. Apparently, she obtained credit cards he didn't know about and maxed them out. He lives on Soc. Security and a small pension. There is no way he can pay these bills. He lives in a community property state. He doesn't know yet if she used his name to obtain them, or signed his name.
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2193
Location: Illinois
Posted: Thu Jun 10, 2004 11:54 am
Sorry to hear of the unfortunate circumstances, He will need to forward both of their personal identifying information. Name Address Social Security Number Date of Birth Copy of Drivers License Copy of Death Certificate Copy of Marriage Certificate With request to obtain copy of the spouses credit report from all 3 Credit Reporting Agencies, cost will be $9.00 each. Experian PO Box 2002 Allen TX 75013 TransUnion PO Box 1000 Chester PA 19022 Equifax PO Box 105851 Atlanta GA 30348 Once he obtains a copy of the credit reports, they will contain the name & addresses for each creditor which she had accounts established with... also it will show the designation if he was joint on any of these accounts. Once he obtains these, being that he lives in a community property state, I would suggest seeking counsel from an attorney. It might be as well that he can write a letter to each of the creditors explaining his situation, that he was unaware of the debt, and his only income is social security. Very possible that the creditors will just write off and forgive the debt, because they can't garnish from the SSI, but if he owns property, that is another matter which will definitely requires legal assistance. Best of wishes on this matter.
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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 358
Posted: Thu Jun 10, 2004 5:13 pm
If the cards are in her name only, your dad isn't responsible for any of the debt.
Quote:
Surviving spouses are not responsible for the debts incurred on a husband's or wife's solo credit card account. "The account really becomes null and void because the person who's responsible for paying is no longer living," says Catherine Williams, president of Consumer Credit Counseling Service of Greater Chicago. This is true even if the surviving spouse was an authorized user and made charges on a card issued in the husband's or wife's name.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2193
Location: Illinois
Posted: Thu Jun 10, 2004 5:20 pm
Polonius Yea I would agree, but this person stated that they lived in a community property state, that should make a difference here.
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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 738
Location: NJ
Posted: Fri Jun 11, 2004 1:47 am
Hang on a moment....is debt considered property? I'm not a lawyer, but that doesn't seem reasonable. You might want to post a msg at family-law.freeadvice.com and ask about this. I tend to believe that Polonius is right. Let us know what you find.
View our latest credit card ratings!
Author:Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 358
Posted: Fri Jun 11, 2004 10:38 am
I live in California, a community property state. That factor doesn't come into play here. You still have to be careful. Any debt of the spouse becomes a debt payable by the estate of the spouse. In a community property state, ownership of most things acquired during the marriage is held equally between the two spouses. If the spouse's estate has assets the executor must sell them to pay the spouse's debts. The scenario here, though, is that the dad lives on a small pension and social security. Neither of those income sources can be attached to pay an independent debt of the spouse. If there are other assets involved, we haven't heard anything about them yet. And I'm assuming that the cards were opened by the stepmother in her name only without the knowledge of her husband. If they were opened as joint accounts or his signature was forged, there's going to be a problem proving he knew nothing about it. He'll probably have to sign an affidavit. In a case like this, typically the credit card companies don't pursue the issue and just write off the debt. It doesn't look good to go after penniless old folks living on fixed incomes and grieving over a newly-dead spouse. Some banks are hardheaded, though, or turn the debt over for collection to firms with no scruples whatever. Sigh.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
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