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Collections Law/Family obligation after father's death
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Question
My father recently passed away with no will. He had several credit cards, lines of credit, a car loan etc... These debts were solely in my father's name and in some cases unbeknownst to my mother. Is my mother responsible to settle these debts? Without my father's income she cannot afford to cover all of the payments. Also, can these creditors attempt to go after my mother's house (in both my mother and father's name)?
In most cases the spouse cannot be held responsible for the debts of their spouse, however the creditor may file a claim against the estate which normally must go through probate to see if sufficient assets would be available to pay the obligations of the deceased. Your state may also have laws allowing them to collect the debt.
All said, she should be safe from any serious collection activity of she is on a fixed income or has little income. Again, your state laws will determine what action may be taken.
Worse case, they may be able to sue the estate, get a judgment and attach a lien against the real estate. It is not likely it can go any further than that. In most cases they cannot or will not foreclose. A lien only means they get paid if the home sells or she refinances her mortgage.
Tell your mom to relax. She is in no danger of losing her home and I don't see the creditors trying to collect from her. They may try but if you or she stands up to them they will likely go away (empty handed).
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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