When we talk about post-death debts, many have doubts about how to proceed and what commitments must be honored by the family, as well as how to know which ones will be paid off and how to deal with all pending issues related to the financial life of the deceased. Therefore, in this article we will explain what happens to the outstanding balance left by the holder in the event of death.
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How to proceed with active debts in case of death?
Banks and brokerages know how to act in this type of situation, since it is common for these institutions. There are basically three alternatives for these cases.
In the first possibility, the family is responsible for paying the debt after charging the credit card company. This hypothesis is usually the first method adopted by the institution. In this case, the financial sector will contact the family and try to offer payment terms so that the debt is settled. The family member may or may not accept the proposal.
In the second scenario, the bank will consider the debt as settled. This can happen when the debt amount is not very high and the institution recognizes that the deceased has no assets to pay the debt. Therefore, the bank may choose to “forgive” the outstanding balance.
Finally, the brokerage can charge directly to the deceased's inventory. In cases where the amount of the debt is significant and the family is not willing to negotiate, the bank can contact the legal department so that the debt is collected from the inventory.
Therefore, as administrators know how to act in these situations, they do not have an age limit for contracting their services. The exception is for assets financed over several years: real estate, cars, etc., as the institution knows that the amount owed will be received, especially if the holder has assets in his name.
Conclusion
As a result, credit card debts left by the deceased must be covered by the estate, within the possibilities available. Thus, the heirs do not need to pay the debts, since they do not change ownership, but the estate's resources are used to settle the outstanding amounts.
In addition, Justice determines that the inheritance be used first to pay all pending issues related to the deceased's financial life.
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