Tag : death

What Happens To Debt When You Die? Modest Money28 Comments

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One of the biggest misconceptions out there at the moment is that debts are written off if/when they die.

You might think that debts are no longer your concern if the worst happens to you, and you’d be right to an extent, but the financial situation you leave behind can have a serious impact on your family.

This is because creditors (the people or companies you owe money to) reserve the right to make a claim against your estate for any debts owed at the time of your death.

For someone who has no dependents and no assets (such as money or property) they’ll be nothing for the creditors to take from.

However, for a person with their own home it could mean that their loved ones can no longer afford to keep the property on.

To make this even more upsetting to your family, if any of your debts are held jointly, it will mean that the other person is now liable to pay 100 per cent of the remaining debt.

This includes the biggest debt you’ll probably ever…

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This entry was posted in Debt, Financial Advice, and tagged Modest Money28 Comments
By : Adam | 5 Nov 2012
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