What happens when a person leaves credit card debt and they have no assets?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What happens when a person leaves credit card debt and they have no assets?

My friend is ill and he has a large amount of credit card debt. His only asset is a vehicle – no home, savings, money, etc. His only heir is his 15 year-old son. The only thing he will inherit is the vehicle and personal belongings. Who will be responsible for the credit card debt?

Asked on June 19, 2011 under Estate Planning, West Virginia

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Family members do not inherit debt. However, this does not mean that your friend's creditor has no recourse here.  The assets of the estate (i.e. car) may have to be sold in order to satisfy creditor claims. Only after the debts are paid will the remaining assets be distributed to the heirs (in this case your friend's son). If the sale of the assets (i.e. the car) are not enough to pay off all debts, then any debt remaining extinguishes as a matter of law (i.e. are written off).


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