Expert: Ray A Miller - 10/21/2008

Question
Thank you for your time. We are in Ohio and our mother died in March 2008 and an attorney is helping us with the estate. There is not much money in the estate and that money will have to be put toward making repairs to the house so it can be sold. The attorney has recommended not paying the credit cards until after the house sells.  Realistically we will be hard pressed to have the house ready for market by May 2009 but that's what we're shooting for. The real estate agent we spoke to said homes are averaging 10 months on the market so that means it could be March 2010 or later before we sell though we are hoping for sooner. Will the credit card companies wait 2 years for payment? The attorney said to give them all collection letters we receive, there have already been a couple. The debts are small, probably $7,000 total and will be paid when we sell the house.
Ber

Answer
Ber,

In this case, I must defer to your attorney.  Be sure to get and keep everything in writing and in one place for future reference.

I can't and I do not think your attorney can tell you if the credit card companies will wait two years for payment.  I would think not but, there again, I am not an attorney.

If you were able to pay the credit cards off, I can not see what harm could come of it because you are protected by the equity in the house.  Plus, in the case of death, credit card companies have been know to settle for 25 to 50% of the balance.

Good luck with this and I hope this helped in some way.