What will happen if a parent dies leaving 50,000 in credit card and medical bills and has no assets?

Question

Roger Durkin · Answer

If the parent has a spouse, it is likely the spouse who will handle the estate. If the debt is solely the decedent, and there is not will, you should get an appointment as an administrator/personal representative. There is a statute that governs how debts and expenses of the estate are to be paid starting with the administrative expenses, the funeral expenses, last medical costs, the credit cards are at the bottom... if there are no assets with which to pay then the estate is insolvent.

Ronald Nims · Answer

The parent's creditors will receive nothing.  The parent's spouse is generally liable on medical bills.  Children are not liable on a parent's debt (unless a child agree's in writing to take on those debts - like if they do the paperwork when a parent goes into a hospital or nursing home).

Jeffrey Gottlieb · Answer

The credit card companies and medical care providers are out of luck (unless there was a co-signore that guaranteed payment).

James Weiner · Answer

Generally if the bills were incurred ONLY by the parent all that parents assets should be sold and used to pay the bills.. any excess debt simply goes away.. nobody owes it. HOWEVER If the bills were incurred on behalf of someone else.. or there is any other authorized user or guarantor on the accounts ... then the creditor may be able to go after that person (or persons) .. SO be VERY careful not to sign a monetary promise or a personal guarantee if you take a parent to the hospital.

Randall Romei · Answer

The creditors of a decedent can only collect their debt from the assets of the decedent.  If the parent has no assets the credit card company and medical services providers will have a bade debt.  Children do not have to pay the debt accumulated from the parents provided they did not voluntarily accept that obligation by accepting responsibility as an inducement for the services or guaranty the debt.

Edwin K. Niles · Answer

A lot of companies will be sad.  You are not responsible for the parent's debts unless you are a signer on the credit cards.

Victor Waid · Answer

Nothing, as there is nothing to pay the creditors with, and don't let the creditors try to impress upon you to pay the bills, as the bills are not yours, and you have no obligation to pay them.

Brian Haggerty · Answer

Those creditors for medical bills might possibly pursue the decedent's spouse, as medical bills may be "debts of the family" which are chargeable to either spouse. The credit card companies can only look to decedent's assets, and if decedent had no assets, then the credit cards will not be paid.

Jayne Sebby · Answer

If there truly are no assets of any kind, the creditors will have to eat the loss.  However, they and the executor of the estate will look for anything that the decedent might have had or did have any claim to during his or her life, including assets held jointly with a spouse, business partner, etc..  And if the decedent attempted to hide or transfer valuable assets during his or her life to avoid paying creditors, such as transferring real estate or farm machinery or financial accounts, a court may be convinced to transfer those assets back to the estate.  Also, repayment of debts supersedes any bequests in a will so the heirs will receive nothing from the estate.  But they won't be liable for the debts either unless they agreed in writing to be responsible for them, such as co-signing a loan.

John Brennan · Answer

The debt becomes the liability of the estate and it there are no assets is uncollectable.

James E. Reed · Answer

The credit card companies and medical providers will not get paid. They will write off these debts.

Kimberly French · Answer

The debt of a deceased person becomes a part of that person's estate. If your parent had a will, it may not make sense to submit the will to probate if he or she left no assets to repay creditors. If your parent did not have a will, it may be a good idea to contact creditors to alert them that your parent has passed away. Some creditors will likely forgive the debt. However, if there are no assets to repay the debts of a deceased person, you are not obligated to pay those debts on his or her behalf.

Thomas Edward Gates · Answer

Likely nothing.  In Washington, if s/he owned a home and the total estate is worth $100,000 you would need to probate the estate.  Because the estate is insolvent, a petition is filed with the court to have the estate declared as such.  The creditors can testify at the hearing, but generally do not.  It would be worth while to talk to a probate attorney to make sure there will be no surprises.

Christine James · Answer

The bills won't get paid.  The creditor's can only come after assets of the estate.

James Maguire · Answer

The creditors would have to be informed that there are no assets available   for payment of the bills. Eventually they will just write off the debts.   The decedent's heirs are not personally responsible for the debts.

Sabina Tomshinsky · Answer

You are not personally responsible for the debt of your deceased parent unless you guaranteed the debt or are a co-signer or some of the credit cards were held jointly with you. It would serve your interests to consult with a probate attorney in your area.

Richard Keyes · Answer

Since there are no assets, there is no probate estate.  The creditors remain unpaid.

C. Thomas · Answer

In general terms, the creditors often end up with nothing.  There are technically claims that can be made against a surviving spouse in such situations, but such claims are not often made against the surviving spouse.  With that being said, I would find it very unusual to see someone owing substantial medical bills at death and that person not having already qualified for Medicaid (assuming "no assets" per your inquiry).   Thus, this could be seen as a red flag to creditors to dive deeper into the decedent's asset history to see if improper gifts were made by the decedent to avoid paying the creditors.

Georges Shers · Answer

Since only the estate is liable for the debts, the creditors should drop their claims once they are sure there are no assets.  The heirs are not liable for the debts.  You should contact all the debtors to find out what proof they need.

James Zitzmann · Answer

You are only personally responsible up to the value of the property that you would receive in the succession proceeding.

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What will happen if a parent dies leaving 50,000 in credit card and medical bills and has no assets?

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