alt Hacker NewsFrom experience, it is a huge inconvenience to people surviving the deceased leaving without any way to pay their debits. And if you don't care about what happens after you die, why did you even care when alive? Why not always be a dick? At least it is consistent.
Replies
LorenPechtel • 10/11/2024
How to pay??
Two experiences with this. Companies don't particularly care who pays the bill. They send a bill, they get money, they don't care if the person who paid is the person. In fact, in my recent brush with such matters the company specifically knew the person was dead when they accepted the payment.
What's hard is getting access to their money to pay debts with.
Under US law, the debts die with the person. You are under no obligation to repay your parent's debts. Now if the debt is tied to a house (mortgage) or a car (car loan), you might lose the house/car if you don't pay, but you do not have an obligation to pay. Likewise failure to pay will not impact your credit.
So if I die in debt up to my eyeballs, and if I am sole signatory on those debts, I have only hurt my creditors, not my family.
caveats-- if my family was counting on the house and I have an unaffordable mortgage, then yes I have caused them harm. Likewise other irresponsible debts.
-- at the end of the chain, creditors are also people. It is their job to loan money at risk, so their loss is their problem, but this assumes I was dealing in good faith when I took the loan.