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Old 01-18-2019, 02:41 PM
 
Location: Mt. Lebanon
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Hi. One coworker came in the office today so upset, saying he didn't sleep at all last night after a call from the credit card companies saying that he has to pay his late dad's debt. I find this highly distressing. Can this be true or can this be a scam? Anyone else heard about such thing?
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Old 01-18-2019, 02:46 PM
 
Location: NJ
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sounds like a scam. credit card company could go after the estate but cant go after the kids beyond that. unless he co-signed a loan for his old man.
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Old 01-18-2019, 02:48 PM
 
18,641 posts, read 13,435,620 times
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They can ask the kids to pay but relatives typcially don’t have to pay. Now if the kids received assets from the parent’s estate before paying off all debt that could be a problem, but if they received nothing it’s a nothing burger
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Old 01-18-2019, 02:49 PM
 
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Well, the estate is responsible for debts including credit card debts. If the net value of the estate ends up being negative, then the creditors have to write off the uncollectable debt.

Has the estate been wound up yet? Is your colleague the executor? If not, he should refer all such contacts to the executor.
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Old 01-18-2019, 02:53 PM
Status: "On The Lookout" (set 9 days ago)
 
Location: The Triad (NC)
28,357 posts, read 61,547,359 times
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Quote:
Originally Posted by turf3 View Post
Well, the estate is responsible for debts including credit card debts.

Has the estate been wound up yet? Is your colleague the executor?
If not, he should refer all such contacts to the executor.
^^There's your answer.
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Old 01-18-2019, 02:56 PM
 
Location: Florida
4,289 posts, read 3,619,512 times
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The cc debt belongs to the person who took out the card. At their death their estate is liable for the debt. The debt should be paid before anyone inherits property from the estate. If the estate gave him money and did not pay the debt they might have a claim and that claim would probably also be against the administrator of the estate. Also their are rules about notifying of death and filing claims with an estate. My short answer is he is not liable.

If he took out the card as a joint owner with his dad then he is liable for the debt.

He should ask the collection agency to send proof of the liability including copies of the documents and citations to the law. I assume they will not but if he has future problems he can fall back on this request. I would also ask for claims to be made in writing and I would look up the cc company and directly verify that his dad had the card and was liable. I would also ask the cc company to send you the detail of each charge as it could be a stolen identity problem.
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Old 01-18-2019, 04:18 PM
 
Location: North West Arkansas (zone 6b)
2,655 posts, read 1,972,955 times
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I seem to recall that some states have this transfer of debt to adult children for medical debt


https://www.debt.com/credit-card-deb...-parents-debt/

You may be responsible for paying your parents unpaid medical bills if you live in one of these states:
Alaska Louisiana Ohio
Arkansas Maryland Oregon
California Massachusetts Pennsylvania
Connecticut Mississippi Rhode Island
Delaware Montana South Dakota
Georgia Nevada Tennessee
Idaho New Hampshire Utah
Indiana New Jersey Vermont
Iowa North Carolina Virginia
Kentucky North Dakota West Virginia
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Old 01-18-2019, 04:38 PM
 
9,082 posts, read 9,184,017 times
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Quote:
Originally Posted by XRiteMA98 View Post
Hi. One coworker came in the office today so upset, saying he didn't sleep at all last night after a call from the credit card companies saying that he has to pay his late dad's debt. I find this highly distressing. Can this be true or can this be a scam? Anyone else heard about such thing?
No, they can't.

However, they can make a claim against your deceased parent's estate for this amount.

I would sure have fun with someone who tried to tell me I had to pay off my deceased parent's credit card. I would say "Send me a copy of the law that says I have to do that". Answer: There isn't one.
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Old 01-19-2019, 02:31 PM
 
20,322 posts, read 13,450,761 times
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Quote:
Originally Posted by gunslinger256 View Post
I seem to recall that some states have this transfer of debt to adult children for medical debt


https://www.debt.com/credit-card-deb...-parents-debt/

You may be responsible for paying your parents unpaid medical bills if you live in one of these states:
Alaska Louisiana Ohio
Arkansas Maryland Oregon
California Massachusetts Pennsylvania
Connecticut Mississippi Rhode Island
Delaware Montana South Dakota
Georgia Nevada Tennessee
Idaho New Hampshire Utah
Indiana New Jersey Vermont
Iowa North Carolina Virginia
Kentucky North Dakota West Virginia

It is important to point out that the remaining thirty or so states with filial responsibility laws on books pertain largely to *MEDICAL* and or healthcare debs. Credit as in unsecured debts are another matter.


https://blogs.cfainstitute.org/inves...leeping-giant/


Furthermore:


"Most states that have filial responsibility laws donít enforce them, hereís why: Most elders who canít pay for care receive federal assistance through Medicaid, and federal law specifically prohibits going after adult children. Also, most folks who need help paying for nursing home care qualify for Medicaid and itís unusual for someone to rack up a large bill before qualifying. So, because there is so little opportunity to apply filial responsibility laws, they very rarely affect families."


https://www.nolo.com/legal-encyclope...home-bill.html


As noted above credit card and other non medical/health related debts racked up by a deceased parent are an issue for the estate to solve. https://money.cnn.com/2014/06/19/pf/...ren/index.html


If deceased has or had no assets and or other claimants take priority then that will be that. You can't get blood from a stone.


OTOH if parent left a house and or other sizable assets as part of their estate, and the executor distributed thus liquidating said estate, then a creditor can file claims forcing those who got to give back.
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Old 01-19-2019, 03:20 PM
 
Location: Northern panhandle WV
3,007 posts, read 2,139,999 times
Reputation: 6681
Quote:
Originally Posted by XRiteMA98 View Post
Hi. One coworker came in the office today so upset, saying he didn't sleep at all last night after a call from the credit card companies saying that he has to pay his late dad's debt. I find this highly distressing. Can this be true or can this be a scam? Anyone else heard about such thing?
I don't suppose you have the details on this, like was he on the Father's card, is there an estate and is it still open, when did father die? Is he the executor of the father's estate?
Unless he signed something to be responsible he is NOT personally responsible, the estate could be if there is one.

If none of the above applies to him, then he should tell the caller to take a flying leap and block any future calls from them.
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