Expert Q&A

What happens to debt when someone dies?

Is the debt forgiven, or taken out of the estate or is someone else responsible for paying the debt? How does it work? Thank you


Related Topics: Debt and Credit, Estate, Wills and Trusts
Related Tags: Debt, Death
Trevor Leffingwell
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By Trevor Leffingwell - Town & Country Insurance Agency
Answered almost 2 years ago

Most debt is tied to a single person and their estate. Unless co-signers are used, this debt will go away upon the person’s death. Some companies will try to collect the debt from survivors, but you should know your rights and connection to any debt if collections begin.

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