Posted on
August 25, 2009
at
4:10 am
I am over 18 but still lives at home with my parents. Don't judge me please - let's just say it's convenient to stay with them because it's near where I work. The reason why I'm asking is because yesterday, a co-workers parents got into an accident, and they did not survive that. The kid's below 18 - so I think he's not going to be obligated by the law to pay off his parents' debts. How about me, I wonder..am i responsible for my parents debt when they die?
Posted on
August 25, 2009
at
4:13 am
Am I responsible for my parents debts when they die?Not unless you are a guarantor or you co-signed on their loans or accounts would you be liable for their debts if they die.
Posted on
August 25, 2009
at
4:18 am
I think so too.Also, whatever debts your parents leave behind, is going to be taken care of by their estate. Meaning if they own that house and lot that you are living in now-plus their vehicles-and other valuable possessions-those are going to be liquidated by a court representative to distribute to your parents lenders.I'm just not too sure if the lenders have to file for a motion to have the deceased debts- satisfied. It's more likely though.
Posted on
August 25, 2009
at
4:23 am
no i do not recall co-signing in on any of their debts and yes they do own this property. so im good then. thanks for the quick reply! one more question though, what if they do not have this estate? are the lenders/creditors going to just let their debts slide? are they not going to after me then?
Posted on
August 25, 2009
at
4:29 am
Cool, I see..how about "authorized users?" Do lenders go after them?
Posted on
August 25, 2009
at
4:43 am
Nope. Not unless you volunteer to pay for them...And just to add on the estate notes, if for example, the sale of the estate is not sufficient to cover the deceased debts, the relatives are still not legally held responsible to pay for the balance. The lenders are just going to have to write that off.
Posted on
August 25, 2009
at
2:49 pm
It's also pretty rare that both parents pass away at the same time, but could definitely happen.
Posted on
August 26, 2009
at
2:11 am
Children aren't legally obligated to take care of either of their parents' debts when they pass away. The responsibility goes to the executor of the estate. The latter in turn may require the heirs--in this case, the children of the deceased--to turn over any assets property that they've inherited. The funds liquidated from this will be used to pay off the debts. If the funds won't cover the debts owed by the parent/parents, the creditor has no choice but to write it off.
