Credit card debt is something that many of us incur at some point during our lives. Even if we pay off the balance regularly, death can come at an unexpected time. This may leave an unpaid balance that is due from the estate. It is important to understand who is responsible for this debt and how to deal with the credit card company in question when administering an estate.
6 Facts About Credit Card Debt and Estate Administration
As a personal representative, it is your responsibility to deal with the credit card debt of the decedent. The following are several helpful facts relating to this type of debt that are important to understand during the estate administration process:
- Credit card debts are the responsibility of the credit card account holder.
- Relatives of a decedent are not responsible for these credit card debts unless they are joint account holders with the decedent or they co-signed on the loan.
- In some cases, if the decedent lived in a community property state, a spouse may be liable for the debt.
- If there is not enough money in the estate to pay the credit card debt, the credit card company is typically out of luck.
- To obtain the balance of any credit card debt during an estate administration, the personal representative can request the balance from the credit card company. This balance must be provided within 30 days.
- If the estate pays off the balance of credit card debt within 30 days after receiving the balance, the credit card company cannot charge any penalty fees or interest on the debt.
Administering an estate is not an easy process when you have no prior experience. Fortunately, we are here to help. We encourage you to reach out today for more information at 714-459-5481.