How to Deal with the Debt of a Deceased Family Member in Texas

 Posted on January 09, 2015 in Debt Collection

A death in the family is always a difficult time for loved ones. Add to that the financial costs of a funeral, and times of mourning can become even more challenging.

If the deceased has debt, it is important to know if relatives are responsible for paying creditors. When a person leaves behind debt from credit cards and other sources, it may be wise to contact a bankruptcy attorney for guidance.

No two debt cases are alike. If the debt was from an account that a living relative owned, the debt will be theirs to pay regardless of the situation. Debt from joint accounts and co-signed loans may also transfer to living relatives.

Selling Off Assets

When a person dies, it is common to sell assets to pay for debts. In some cases, though, the value of the deceased’s assets is not enough to cover the debt. In these cases, it may be wise to consult a bankruptcy attorney to discuss the options.

Talking with Creditors

In many cases, it makes sense to have an honest and open conversation with the deceased’s creditors about the situation. Some creditors may choose to reduce the amount owed—depending on the value of the debt—in the event that the debtor passes away.

Dealing with Debt in Texas

The process of paying off a deceased relative’s debt in Texas may seem complicated—and in many cases, it is. Community property law stipulates that relatives may have to pay the debt of a deceased family member.

It is important to remember that every situation is unique. For this reason, the guidance of a family attorney may prove invaluable.

If you are struggling to pay debt and would like to discuss your situation with a lawyer, contact the Law Offices of Chance M. McGhee at 210-342-3400. Mr. McGhee is an experienced San Antonio bankruptcy attorney, and he may be able to help you reach financial stability and end harassment from creditors. Call us today for a free initial consultation.