The debts that cannot be erased and are unforgivable are unsecured debts, alimony and child support, certain unpaid taxes and tax liens.
Unsecured debt is a type of debt that cannot be forgiven or be wiped out through bankruptcy or upon death, meaning it must be paid back.
Some types of unsecured debt, like student loans, alimony and child support obligations, and certain unpaid taxes, can't be discharged.
Medical bills are also not forgiven upon death and does not go away when you die.
Most often the medical bills and medical debt along with other debts when you die will be paid out of your estate.
However if the deceased person did not leave enough assets to cover all the debts then bill collectors will sometimes look for someone else to pay off the debt.
Debts that are not forgiven at death are unsecured debt that includes medical debt, credit card debt, mortgages, bank loans etc.
The unsecured debt when you die becomes the responsibility of the estate to repay.
Debt collectors cannot go after the family of the deceased unless the family member is listed on the debt as a cosigner or owner of the account.
As long as the family is not listed on the debt or an account owner or cosigner then the family is not responsible for the deceased persons debt.
A persons estate will go to pay for the deceased persons debt they owe but if the don't have anything in their estate then they won't be able to collect on the debt.
Credit card companies do not write off debt when someone dies.
The credit card debt that someone owes when they die is still owed to the card issuer by the deceased person and must be paid by the estate or remaining signatory on the account.
Credit card companies know when someone dies as the credit bureaus which include Experian, Equifax and TransUnion are notified upon someone's death.
Then the deceased persons credit reports are sealed and a death notice is placed on them and the notification can occur in one of two ways which include either from the Social Security Administration or from the executor of the deceased persons estate.
An executor pr anyone else cannot use a deceased persons credit card although the executor can withdraw money from the deceased persons bank account once the court probate approves it.
But using a credit card after someone is deceased is classified as fraud and can get the person into trouble even when they are an executor.
If no beneficiary is named on a bank account when someone dies the bank account will be frozen and the bank account will enter probate and during the probate process the money in the account is not accessible until the probate process is completed and an executor gets access to the account and distributes the estate.
You can access your dead spouses bank account when the spouse dies if you're a beneficiary on the account and if you are a beneficiary on the account you can access your dead spouses bank account by visiting the bank and bring a certified copy of the death certificate and an ID.
Bank account beneficiary rules usually allow payable-on-death beneficiaries to withdraw the entirety of a decedent's bank account immediately following their death, so long as you present the bank with the proper documentation to prove that the account holder has died and to confirm their own identity.
Banks don't usually get notified when someone dies and so it's usually the next of kin or family member who notifies the bank when a bank account owner dies.
Someone who was appointed by a court to handle the deceased persons financial affairs can also notify the bank after the person dies or sometimes the bank learns of the persons death through probate.
After death a bank should be notified as soon as possible or within a few days to a week.
The sooner you notify the bank the sooner the account will be frozen and prevent access to the bank account.
However if it's a joint bank account you don't need to notify them as quickly of the persons death and the funds go to the living spouse that is on the joint account owners list.
You would provide the bank with proof of death in the form of a death certificate.
A bank account gets frozen when someone dies if the bank account is not a jointly owned bank account.
If the bank account is jointly owned and one person dies then it does not get frozen and the funds pass on to the living account holder.
However if both jointly owned bank account owners die then the joint bank account then gets frozen and has to go through probate to allow access to and release of the funds.
Creditors can go after joint bank accounts after death to satisfy debts and you may share some responsibility for the debt with the other account owners estate.
If you borrowed money or signed a loan or other agreement as a cosigner then you are responsible for the debt as well.
If you're not a cosigner then you're usually not responsible for the debt of the deceased even when they are your spouse.
However in community property states, spouses actually share the responsibility for certain types of marital debts.
A will does not override a joint bank account as the joint bank account passes outside the will because the joint bank account is considered to be a non probate asset which means it passes directly to the surviving owner instead of going through the will.
And in most cases the joint bank accounts are used as convenience accounts.
A joint bank account does not get frozen when one person dies as joint bank accounts and joint credit union accounts are held with the rights of survivorship.
The rights of survivorship mean that when one of the joint bank account or joint credit account or even savings account holder dies the money in those accounts automatically goes to and passes on to the surviving owner or equally to the rest of the owners if there are multiple people on the bank account.
A bank account will be frozen when someone dies if the bank account is not a jointly owned bank account and only one spouse dies.
If the bank account is a regular non joint bank account then after the bank is notified that the person has died they will freeze the bank account and it will have to go through probate to get the access to the bank account restored and have the funds from the frozen bank account released.
The length of time it takes for a bank to release funds after death is around 6 months although it can take longer depending on how long it takes for the probate to finish.
If there was a will and the funds or money was left to you then it should be released to you after it goes through the probate process but it can vary.
If the bank account is a joint bank account then you would as a living spouse would still have the funds available to you after the death of your spouse.
In general, the executor of the estate handles any assets the deceased owned, including money in bank accounts.