If someone’s in debt at death ?

Discussion in 'Living Room' started by Alex P Keaton, 29th Mar, 2022.

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  1. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Hi

    I’m not sure where to look for the answer to this question. You guys are smart im sure someone here will know lol so I thought I’d pose the question here!

    What happens if both parents die and they haven’t paid off their $40,000 brand new car they have just bought or thousands of credit card debt?

    Does it get written off as a bad debt? This is what I’m guessing.

    It’s not my parents. It’s my brother. I’m curious what happens.
     
    Alex P Keaton, 29th Mar, 2022
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If a person dies their debts will come out of their estate. If they don't own enough assets the creditor will miss out.
     
    Terry_w, 29th Mar, 2022
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    Lizzie, gman65 and Alex P Keaton like this.
  3. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Thanks
    Oh good ok so the creditor will miss out. Yep that’s what I was hoping

    He might as well live it up I reckon. lol. Who knows what’s around the corner.
     
    Alex P Keaton, 29th Mar, 2022
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 29th Mar, 2022
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