Generally, no one else has to pay back debts for a person who has died. There are some exceptions that vary by state.
When someone dies with an unpaid debt, it should be paid from any money or property they left behind, according to state law. This is called their estate. If there is no money or property left in an estate, or the estate can’t pay, then the debt generally goes unpaid. For example, when state law requires the estate to pay survivors first, there might not be any money left over to pay debts.
For relatives who are not executors or administrators of the estate
You do not have to take responsibility for debts owed by a deceased person. You do not need to pay their debt, unless one of the situations below describes you:
- You are a co-signer on the person’s loan
- You are a joint account holder on a credit card (not just an “authorized user” on the account)
- You are the spouse of the person, and your state law requires a spouse to pay the debt
Debt collectors can contact you to try and locate the executor or administrator of the estate, but they should not discuss or mention the debt to you. You might want to tell the debt collector who the executor is. Debt collectors cannot use unfair, deceptive, or abusive practices to get you to take responsibility for a debt.
For relatives who are acting as the estate’s executor or administrator
If you are the executor or administrator of the deceased person’s estate, debt collectors can contact you to discuss the deceased person's debts. Debt collectors are not allowed to say or hint that you are responsible for paying the debts with your own money.
You have the right to tell a debt collector to stop contacting you
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FAQs
If you are the executor or administrator of the deceased person's estate, debt collectors can contact you to discuss the deceased person's debts. Debt collectors are not allowed to say or hint that you are responsible for paying the debts with your own money.
Can a collection agency collect from a deceased person? ›
Usually, when someone dies, their estate satisfies outstanding debts. If the estate does not include enough property, the debt usually cannot be collected. Sometimes, however, debt is shared. If you leave shared debt behind, your loved ones may end up with the bill.
What is the CFPB final debt collection rule? ›
The final rule, among other things, clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications and provides a model notice containing such information, prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to ...
Are debt collectors allowed to call relatives? ›
It is good to note that debt collectors are only legally allowed to contact your relatives to locate you but not to collect money for your debt. Typically, debt collectors are allowed to contact each family member, but only once.
What is the 777 rule with debt collectors? ›
The 7-in-7 rule explained
Collectors are permitted to place a call to the consumer about a particular debt seven (7) times within a period of seven (7) consecutive days, so long as no contact is made with the consumer in any of the attempts.
Can debt collectors go after the family of deceased? ›
If you are the executor or administrator of the deceased person's estate, debt collectors can contact you to discuss the deceased person's debts. Debt collectors are not allowed to say or hint that you are responsible for paying the debts with your own money.
What happens if creditor reports you deceased? ›
If you have a deceased indicator on your credit report you won't get approved for a mortgage, loans, or any major financial purchases. Creditors will believe that you are trying to use a dead person's information to obtain credit.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
How long before a debt becomes uncollectible? ›
What is the new FCRA law passed in 2024? ›
Fair Credit Reporting Act File Disclosure: The maximum charge to a consumer under the FCRA for file disclosure increases effective January 1, 2024, to $15.50 from $14.50. See 88 Fed.
Don't give a collector any personal financial information. Don't make a "good faith" payment, promise to pay, or admit the debt is valid. You don't want to make it easier for the collector to get access to your money, or do anything that might revive the statute of limitations.
How do I stop debt collectors from calling my family members? ›
If your parents or friends are being harassed because of your debt, instruct them to ask politely that the collector stop calling and to mention the FDCPA by name. Fax a letter asking that the calls stop immediately.
Can collection agencies harass family members? ›
Anyone harassed by a debt collector can bring a FDCPA claim
Innocent parties that are harassed by debt collectors about a debt of a friend, or co-worker, or family member, are protected under the FDCPA. Which means they can also pursue a claim against an abusive or harassing debt collector.
What are 2 things that debt collectors are not allowed to do? ›
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
What's the worst a debt collector can do? ›
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
How do you outsmart a debt collector? ›
You can outsmart debt collectors by following these tips:
- Keep a record of all communication with debt collectors.
- Send a Debt Validation Letter and force them to verify your debt.
- Write a cease and desist letter.
- Explain the debt is not legitimate.
- Review your credit reports.
- Explain that you cannot afford to pay.
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
Am I obligated to pay my deceased parent's debt? ›
You are not responsible for your parents' debt. This is true regardless of whether you inherit assets under their estate. However, a parent's estate must settle any debts before you can inherit. And children often share financial responsibilities with aging parents, often medical and housing costs.
Is anyone responsible for a deceased person's debt? ›
The executor — the person named in a will to carry out what it says after the person's death — is responsible for settling the deceased person's debts. If there's no will, the court may appoint an administrator, personal representative, or universal successor and give them the power to settle the affairs of the estate.
Who takes over debt when someone dies? ›
Most debt is paid by the estate and assets of the deceased
The executor (see the next section) of the estate must take care of debts first, before figuring out how to disburse the rest to heirs.
