If That Is The Case, Then Why Does The Debt of a Spouse
Affect So Many Widowed Spouses?
You may still have heard
stories of how debt affects the partner of a spouse. But in a way, these are
misleading. When a partner dies, the widow or widower is not receiving that
individual's debt, but the lending institution does have a right to
collect their dues.
These lending institutions can take their
owed money out of the deceased bank accounts. This is where the problem
arises - many couples have joint accounts, meaning that they share finances.
A joint account is still an account in the deceased's name, which means
that lending institutions are allowed to take money from the account and it
is possible to leave the deceased's family with next to nothing.
Similarly, anything the individual owns is at risk for repossession as well.
The house, the car, and anything else that can be taken in order to pay back
the debt is legal if it is in the name of the deceased. Can
the Lenders Ask the Family For Money if the Assets Are Not
Many lenders, when the estate is not enough to
cover the debts, tell the family they are required to pay back the debts in
their place. But no matter what they tell you, be advised that you are not
required to pay back any of the debts of the deceased at any moment. Debt
companies can advise you further on any concerns you
might have regarding this issue. There is no legal obligation to pay back the debts
of someone that has passed if
your name is not on the loan
So if you get asked to pay it back, or even told
that you have to pay it back according to the law by a lender, you are not
obligated to pay back the loans. When an individual dies, the debts of the
individual die with them with the exclusion of anything that can be used to
pay back the loan that is also in the individual's name.