Yet another problem hanging over our heads

[Ann]

All,
My father in law passed away a month ago. I just got a letter from a collection agency sending to our address request for an $1100. balance he had on a credit card. It was addressed to The Estate Of.... He did at one point live in our home before he became ill but why must we have to pay his balance or do we? We knew he had a balance but we never thought it was our responsibility to have to pay it. We sent notice along with the death certificate to the company shortly after his death and thought that was enough. If the card is not in our name and technically there is no "estate" how would you handle this. Help!!

[Fresh]

Suggestion

Hi Ann,

First, I am so sorry for your loss of your dad.

Based on what you said, you are not responsible for your father's debts. I'm assuming there is no estate because there are no assets, right?

What you did usually handles the issue. Namely, you contacted the original creditor and the company told you to send a copy of the death certificate, which you also did.

I would contact the original creditor by phone and ask them what the issue is in view of the fact that you sent the death certificate. Usually, it's the death certificate with the account information so they can close the accounts. When you call, ask to speak with a supervisor. Tell them exactly what you have done and emphasize that the entire matter is extremely stressful to you. Be sure to ask WHY the account was sent to collections rather than resolved (if the collection activity occurred thereafter). After you get off the telephone, write a letter with your dad's account number and include another death certificate. In the letter, reference your phone conversation with the supervisor. Be as detailed as possible. Send it return receipt requested or priority w/delivery confirmation. You need to keep a record of everything.

Hopefully, this matter will be resolved soon. These companies are very desperate these days because usually 1-2 months for resolution for deaths is enough. Besides, they have insurance to cover this.

I wish nothing but the best for you!

~Fresh~

[nokia123]

All,
My father in law passed away a month ago. I just got a letter from a collection agency sending to our address request for an $1100. balance he had on a credit card. It was addressed to The Estate Of.... He did at one point live in our home before he became ill but why must we have to pay his balance or do we? We knew he had a balance but we never thought it was our responsibility to have to pay it. We sent notice along with the death certificate to the company shortly after his death and thought that was enough. If the card is not in our name and technically there is no "estate" how would you handle this. Help!!

Sorry for your lose, the samething happened to me with my mother cc, all i had to do was call them and fax them her death certificate and all was done. now they will still try to get you to pay, just let them know you are not incharge of there estate.

[DebtHater]

I too am sorry for you lose.

Simply put, you are not responsible for any debt he accumulated.

In situations like this, anything he owned (belongings and cash) is his estate. Before any thing within the estate gets passed to survivors, anything he owes must be satisfied.

Example, if one dies with nothing but $5.00 in his pocket, technically that $5.00 must go toward any debt they had. In the other extreme, if someone had a paid for $300,000 house that was to be passed to survivors, and at the same time had a $50,000 credit card bill, the value of the house would go against what is owed to the creditor.

[SMinGA]

Just wanted to add - any life insurance policy proceeds would NOT be part of the estate. Those would belong to the beneficiaries.