Anyone know anything about estates/divorces?

Question

My parents divorced and my dad in the divorce got this credit card because it is fully in his name. My mom is no where on it. My dad then passed away 6 months later in a nursing home with nothing every penny had to go to the nursing home so there is no estate at all. The credit card people about 4 months later turn us in to collectors saying we haven't paid it when I called them and said he had passed away and there is no estate. They are treating to take part of our house if we don't pay and calling constantly trying to get the money. I don't know what to do. Do I pay it because my parents at one time made that debt together so it doesn't hurt my moms credit or do I not because she had nothing to do with it and there is no estate to pay it with? Anyone that knows about this kinda of thing please help.

Answer 1

Only issue I see is who's name is on the house?  If his name is on the house, depending on the state you are in, they may or may not have a claim to the house depending on how it is titled.  You need to talk to someone at the probate clerk's office and get a feel for how the credit card debt may or may not apply to the house; after that, you may need to talk to a probate atty about an intestate estate

Answer 2

Was your mother  a cosigner on the application or did your father sign credit application himself without a cosigner?

Credit cards held exclusively in the name of your spouse should be canceled. Do you have an executor or personal representative? Did he have a Will?

You need to focus on the accounts where your mom is a co-signer.  The ones that do NOT have your moms name as the primary cardholder will never get paid, as the debtor (Your Father) has passed.

You need to send a letter to all of the credit card companies, and  tell them that you can not pay, as your father's deceased.

Answer 3

Okay, here's the scoop:  Generally, whatever debt the deceased leaves behind goes to his estate.  His executor must then send (or post in the local newspaper) a notice to each creditor asking them to make a claim against the estate so that, if there is enough to pay off all debts, each creditor will get his/her share.  If there isn't enough in the estate to cover the debts, the beneficiaries are responsible for them.  If there is no Will, the next of kin, determined by a strict formula of successors, is usually responsible.  Unfortunately, unless we have insurance against it, debt does not die with us.  The estate is liable for all debt left behind by the deceased.

What complicates matters is that your parents were married when your Dad acquired the card.  Presumably, most of the stuff he bought with the card was for a family purpose, or having the card lightened the load of small debts that otherwise the rest of the family would have to bear.  Both spouses are responsible for any debt acquired during a marriage because, presumably, both benefitted from what was bought. However, the responsibility to pay the marriage debts is usually divided between the spouses before a divorce is granted by the court.  If the debts were incurred during the marriage, however, and they were not paid upon divorce, your Mom could still be responsible.  Check the dates of the purchases on the credit card statements.  If the dates match up to the time they were married, unfortunately, she'll have to pay up.

Good luck.

Answer 4

Many states do have laws that a spouse is liable for the other's debts, even if their name isn't on it at all.  We went through this with one debt that was in both hubby's name and his ex.. and it was directed in the divorce for her to pay that one.  What we were told.. it does not matter to the creditor, who had it in the divorce, since both remained liable in the agreement with them.  So.. yeah, this is not uncommon as you think. And with the economy like it is, foreclosures, etc.. I think collection people are out for blood, bullying people to get whatever they can.

To my knowledge.. credit cards don't go to "taking" part of a home for just a credit card.

http://www.ftc.gov/bcp/edu/pubs/consumer...

Here is some info about law on debt collections.

Overall, mom has to make the decision, depending on how much it is.