Who is responsible for debt of a person if they pass away ?

Question

Who is responsible for debt of a person if they pass away ?

Answer

The estate of the person who died, generally, assuming that the decedent was the sole obligor on the debts. If another person was also a co-obligor, then it depends. It also depends on the kind of debt that it was and whether there are enough assets in the estate to pay the bills. If so, then everyone gets paid. If not, then claims are paid in order of priority and when the executor runs out of funds, that is it. Claims have to be properly filed and notice has to be given. I would enourage the executor of the estate to seek legal counsel.

In the case where the deceased had no assets and only debts, then probate may not be necessary. In this case only, I would write a certified letter to the creditor and send a copy of the death certificate. I would advise them that there are no assets in the estate and that probate will not be filed. I would then ask them to simply close the account.