Question

What happens to your debt when you die?

I'm wondering if someone is in debt and owes a lot of money to credit cards, personal loans etc then what happens to that debt when the person dies?

Are the relatives and children of the deceased responsible for the deceased persons debt?

Answer 1

The credit card companies are insured for this in case someone dies and can't pay off their debt.

Unless the kids or any other relatives were signed onto the contract as part of the debt then the debt will not pass on to the child or relative.

The child or other relatives are not responsible for paying back any debt the deceased person may owe or owes.

But if property hasn't been willed to a relative or child then the state will take over the property and other assets to pay back any debt.

Answer 2

Don't worry you will not be stuck with the debt and they can't go after you if you're not on the contract for the debt.