Family And Debts

Do debts die with you?

It is complicated what happens to your debts when you die. In essence they form part of your estate. What you leave to, perhaps, your relatives. If you die and you leave any debts, no assists, or any property, then effectively your debts die with you. If you leave property but you also have unsecured debt, such as credit cards and loans, it is a good idea for the people that you inherit get some proper professional advice. As a debt doctor I have dealt with a number of such cases.

Am I responsible for my parents debts after they die?

If your parents leave you your estate, well then yes, you inherit both the good and the bad. So if its property, you inherit that. Clearly, you'll have potential other liabilities, such as inheritance tax. But also you'll be due for any unsecured debts that you're left. If you find yourself in this situation, do get advice with a debt doctor for a number of successful negotiations in this kind of situation.

Am I jointly responsible for my partners debts?

Responsibility for your partners debts is not straightforward. If you've both signed the loan or credit card agreement then you're both liable. In that situation, yes, you are responsible for your partners debts. However, if somebody is an additional cardholder then that person is not liable. Now, if your the person who's the additional cardholder, that's good for you. If, however, you've put your partner down as an additional cardholder, and they've then left, I'm afraid you result in holding or being responsible for that debt.

My partner ran up debts in my name and then left me. What can I do?

As a debt doctor, I've quite often been contacted by people who have run up debts, not themselves, but their partners have run up debts in their name and then left. So what can you do? Well, get very angry. If you're married, you can include it as part of the divorce. Otherwise, the debt is yours and has to be dealt with in the same way as any other debts.