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What Happens To Your Debt When You Die

This is kind of a interesting question that we get from time to time.
It really has a great deal to do with why you need term life insurance.

The scenario:
You're 40 years old, and have a great job making a good living.
You've taken on the usual types of debt. You've got credit cards, lines of credit, retail credit for your ATV and boat. You've got a mortgage for $250,000.

Your spouse or anybody else has not signed on any of your debt. You are the sole signer on all of the debts meaning that you're solely responsible for them.

One day you're having fun with the family at the cottage and you've been riding your ATV and earlier in the day you took the family for a boat ride up and down the lake to see all of the beautiful scenery.

All of a sudden you feel a pain in your chest and die from a heart attack. (Grim Story - sorry folks)

NOW WHAT HAPPENS?
THE BIG QUESTION: Now that you're dead, does your debt die with you? Are the debt contracts null and void with your debt? Does your death wipe out all of the debts listed above?

The short answer is NO the debt doesn't die with your death, somebody is still responsible for it.:

I'm going to let Sheldon the expert answer this question in detail for you.

Stay posted for the detailed answer to this question.

Articles from November 2006
More articles from Year 2006

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