What happens if you die and you still have debt?
It may seem like a silly question, but there are now collection agencies that specialize in collecting on the debts of the dead.
As this NY Times article says, “Dead people are the newest frontier in debt collecting, and one of the healthiest parts of the industry.”
Obviously, agencies can’t actually get money from the dead — so they’re going after the relatives who are still living, usually surviving spouses, sons, and daughters.
In many cases, relatives believe they have to pay the debt, and will pay up as a way of honoring the dead.
But here’s the thing.
While the creditor might have a claim on the estate, the relatives of the deceased have no obligation to repay the debts of a dead relative.
Frankly, I think it’s shameful that there are agencies doing this… guilting people into paying debts that aren’t even their responsibility.
Just how far will Americans go to make a buck?
Apparently, they will go to the grave and back again.
If you have a relative who has died, please know this:
You do not have to talk to debt collectors about the debts of the deceased. And you do not have to pay those debts either. If you are seriously concerned about a specific issue, please get legal advice before paying anything.
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Thanks for making this knowledge available to people right now, Ryan. Have you Stumbled this and added it to Digg and Mixx? It can really go wild with the right headline.
@DK – You’re welcome. I haven’t submitted yet to any social networks. You’re welcome to if you’d like. :-)
Thanks for giving such a wonderful, valuable and informative post. Even I thought that we have to pay debt on behalf deceased relative before reading this post. In my neighborhood, one friend of mine had to pay debt on behalf of his dead Aunt. These debt collectors put so much pressure on you that you start thinking that if we’ll not pay, we’ll be in trouble. Thanks for sharing such wonderful information with us.
Hi Ryan,Great post. It’s really an amazing post, I’ve just submitted it on my digg. I hope it goes a long way. See link here http://digg.com/business_finance/Collecting_on_the_Dead
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