The death of a spouse is an emotionally tragic time. The responsibility for the deceased spouses debt can loom over the thoughts of the survivor; especially in a community property state. Financial situations should be avoided until the surviving spouse has the ability to think and act clearly. Typically, creditors will note accounts with a grace period when they are aware of the situation. However, if the remaining husband or wife is not able to take control of the finances within a few weeks, a relative may need to offer assistance.
Who is Responsible for the Deceased Spouses Debt?
Some creditors who are aware of the spouses recent death will contact the survivor and demand payment. These companies may make the remaining spouse feel obligated to pay the financial responsibilities of the deceased. The United States Federal Trade Commission is the agency in charge of overseeing consumer protection issues. The FTC reports the surviving spouse is not typically responsible nor legally obligated to pay the debts of a family member who has passed away.
The rights of the surviving husband or wife are specifically covered by the Fair Debt Collection Practices Act. This Act bars debt collectors from using unfair, abusive (including emotionally abusive), or deceptive tactics when trying to collect a debt from anyone. Under this act, a debt collector is defined as collection agencies, lawyers who collect debts on a regular basis and companies that buy delinquent debts.
The law states that the estate of the deceased individual is responsible to pay their debts. If the estate does not have enough to cover the debts they go unpaid. The surviving spouse may be obligated to pay in some instances but an attorney should be consulted before any payments are made toward debts. Other relatives of the deceased are not legally obligated to pay simply because of a relation.
What to Do if Debt Collectors Call
If a debt collector calls to request or demand payment simply give the caller the contact information of the estate executor. If there is no will, the court may appoint an executor to settle the affairs. The debt collector should not talk to anyone about the deceased affairs except the executor or surviving spouse.
Do not provide personal information to anyone who calls about the deceased spouses affairs. Do not provide social security numbers, birth dates, or financial account numbers for either spouse. If the caller had an open account with the deceased this information will already be in their databases.
Reference: Debt Collection FAQs: A Guide for Consumers
Jennifer Terry - Jennifer Terry has worked to promote self-determination and consumer education for 10 years. She has been writing since 2004 and has been ...
