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What Happens to Credit Card Debt after Death

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What Happens to Credit Card Debt after Death

What Happens to Credit Card Debt after Death?

Unfortunately credit card debt survives the death of the card holder and leaves the survivor with issues to address.  Typically credit card debt must still be repaid after the death of a debtor and usually must be paid by the estate of the deceased.  This is a common problem with inheritances where the relatives or surviving family members expect to inherit large sums of money and did not know the extent of the credit card debts incurred by the recently deceased.


In the absence of a debt settlement attorney helping guide the estate, if the remaining estate has more than is owed, then the debts are repaid in full.  If the estate has less than is owed, then the debts are paid off as much as possible and the losses can be written off by the creditor. This however varies by state law.  For example in community property states like California, the surviving spouse is jointly responsible for the debts incurred during the marriag and instead of writing off the unpaid debt, the creditor can go after the surviving spouse.

When dealing with the debt or credit card debts of the recently deceased, contact a qualified California debt settlement attorney.  A qualified debt settlement attorney can work both before and after the death of a consumer to likely reduce and  settle debt for much less than the principal balance owed which can ensure the maximum remaining balance is inherited by the family- not going to the credit issuers.  No one typically prepares for a death so don’t leave your debts as something hanging out there as it could be a big issue to the survivors. If you are preparing for a loved one’s death, include a debt settlement attorney in that planning to analyze and settle debts before and after death.