If someone dies and they have outstanding bills who is liable for them?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If someone dies and they have outstanding bills who is liable for them?

What happens if this person left no valuable assets or enough insurance money to pay their debt off?If this someone still owes for the home’s mortgage and the other person that is on the loan is still living what happens then, would the debt collectors put a lien on the home? If there is a power of attorney or executor of the estate are they responsible?

Asked on November 10, 2011 under Estate Planning, Virginia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Although it is difficult to determine where you are in the person's lifetime that we are talking about, I get the feeling that they have already passed and I am sorry for your loss.  Generally speaking - as you have many questions here and we need to narrow things down - the estate of the decedent is responsible for their debt.  An estate can indeed be insolvent just like a live person and file for bankruptcy.  A Power of Attorney dies with the person for who it is enacted so that is no longer valid.  The Executor of the Will is now in charge of sorting things out - gathering assets and debt and paying debt with the assets.  As for the house, one needs to see the documentation and understand the relationship involved.  Are both people on the mortgage?  Is it a husband and wife and did the House pass one to the other automatically ("rights of survivorship") at death?  Please get help here.  Good luck.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption