Monday, August 17th, 2009

Can credit card companies sue an estate of someone who has died to collect outstanding balances?

Credit Card Companies
artis asked:


My father in-law has incurable cancer, and outstanding credit card debt of about $55K. Can the credit card companies sue his estate or children to collect the outstanding balances on his accounts once he passes away?

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10 Responses to “Can credit card companies sue an estate of someone who has died to collect outstanding balances?”

sporregar Says:
August 18th, 2009 at 7:20 pm

They’ll go after the estate. As will all his other creditors. If there’s any money left, then it will be split up per the will.

wartz Says:
August 21st, 2009 at 4:59 pm

All creditors have the right to file a claim in the probate of a deceased person. They can not sue the family unless the debtor has transferred property to them for the purpose of cheating creditors. It may seem cold, but if he has significant assets now is the time to speak to an attorney about estate planning before it is too late.

mysticalviking Says:
August 21st, 2009 at 11:41 pm

Creditors usually can collect from the estate of the deceased, I was a beneficiary to a will (Wisconsin), and all the bills and outstanding balances had to be paid before any of us were given anything.
When my M-I-L passed away last year, my F-I-L, said that there could be no “disposal” of her assets for forty-five days(Arizona). Check the laws in your area.
I am sorry for your family’s loss.

Dianne m Says:
August 23rd, 2009 at 4:24 pm

I just settled an estate w/ $50 G in debt, mostly credit cards and yes it is the legal right of creditors to sue the estate and I was fortunate to bargain with some of the debtors to settle for less, before the court ordered full payment. Maybe you can do something to settle with them before the court order. Good luck.

Toodeemo Says:
August 25th, 2009 at 4:44 am

Yes. Though most do not. Provide a death certificiate to each of the credit card companies when the time comes. Most credit card agreements have a successors and assignees clause that binds the estate and/or children etc to pay. I worked for a collection law firm that handled most of the big major credit card companies. Usually a death cert. will end the matter.

Bob Says:
August 28th, 2009 at 6:57 am

Most state laws require that a will make provision for the payment of lawful debts, or it is not valid.

Giving away your assets so that you have no means to pay the debts is called “fraudulent transfer” if you are dieing or not. Creditors can then sue the current holders up to the value of the assets transferred.

Ask M Says:
August 28th, 2009 at 5:59 pm

The Lawyer of the Estate or the Executor, can ask for validation to make sure the debts are not past any Statute
of Limitations. ANYONE your Father-In-Law can file claims
for up to one year. They can not go after the children, it was HIS debt.

make them validate the debt first

creditinfocenter com

Nicki W Says:
August 29th, 2009 at 11:02 am

They can and will attach to the estate for the full balance. If there are liquid assets now, a debt settlement company should be able to get you out for less than 1/2. When they go after the estate with ease, they will get paid in full. Check out the free evaluation form at They have references who saved more than 60% on large credit card balances. Good luck.

Kat G Says:
August 30th, 2009 at 8:49 pm

If there is enough money in his estate his debt should be cleared and then the rest can go to who he willed it to. If the estate has enough to clear or pay a portion of the credit card bills they can and will get there money.

Raul21 Says:
August 31st, 2009 at 9:04 am

They can go for the estate , not the children unless they are co owners of the credit card.

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