When a Loved One Dies, Don’t Be Pressured Into Paying Debt That Is Not Yours
When we lose a spouse or parent, it is not uncommon for loved ones to be left to clear up his/her affairs and financial matters. It is natural to want to do this quickly while mourning, but our haste could lead to taking responsibility for matters for which we aren’t liable. For instance, when a loved one dies leaving behind credit card debt, are we responsible for its repayment? Generally speaking we are not, although there are exceptions. (1)
In community property states debts, like assets, accumulated during the marriage can be considered jointly owned. In that case, a surviving spouse possibly could be liable for credit card debt incurred by his or her deceased spouse. (1) New Jersey is not a community property state; it is a common law state. Therefore in this State, debt is the liability of the person who signed for and incurred it. (2)