Am I legally responsible for a personal loan made with a friend that is now deceased?

UPDATED: Mar 24, 2012

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Am I legally responsible for a personal loan made with a friend that is now deceased?

I took out a personal loan through a family friend. The loan is tied to her CD and I have been making payments on time every month directly to the bank. Our friend has recently passed away and the children are looking to liquidate her estate. I do not have the resources to get a loan to cover the remaining funds put into my name to free up her CD. I have offered to pay the children directly monthly instead and they have declined. Other than moral obligation am I legally bound to this loan?

Asked on March 24, 2012 under Estate Planning, Texas


Patricia F. Bushman / Bushman & DuBose, LLC

Answered 10 years ago | Contributor

Your friend's estate has a right to collect her debts.  Did you sign a note or was it verbal?  If there is no note, it might be hard for them to collect, although not impossible.  But it will also be difficult for them to change the terms of the loan, which can be proved by how you have been doing it all along.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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