Inheriting debt?

[Diesel73L]

I figured the BK whiz kids here would probably know the answer to this. My wife is currently fighting with her sister because they recently found out that their father is dying. My in-laws have a lot of debt. They filed for BK in the late 80s, didn't learn their lesson, and are essentially back where they started with huge amounts of credit card debt (I think it's $50-60K between the two of them). Anyway, my SIL called up my wife and telling her that we need to chip in on a life insurance policy for my FIL because she is afraid that creditors will come after her when my FIL dies. My wife told her that A: it's probably impossible to get life insurance for him at this point anyway, B: no creditor would have legal rights to her money anyway (she has not co-signed any loans with my in-laws, etc...), and C: how rude and self centered! I just want to make sure that we are correct. Thoughts?

[df04527]

Correct...have been there. The debt dies with them unless there is a co-signer or assets such as a home etc. My parents died, in debt, and pretty much nothing else to include a home. Have never heard a word from any creditor. Not sure about any other nuances that may apply though.

[lotsahats]

You'll get letters though, trying to coax you into paying it. "Honor his good name" and such BS, but don't buy into it. Unless you co-signed, the debt dies with him.

[Pjmax]

I've been there too. Parents and sibs lived in another state. I was usually left out of decisions because 'I wasn't there.' father had taken out a second mtg. and CC's in my mother's name (she didn't know.) After my dad died, we all received letters from attorneys. I think they were just setting things up in case there was anything in the estate they could grab. There wasn't. Between that, funeral expenses, making sure Mom was ok, then her death, we all became aware that these are issues that can tear brothers and sisters apart. In my case, sister #1 was always out for herself and tried to grab whatever she could. Sister #2 (the good one) and her husband thankfully prevailed in doing what was best for mom. A little off track, I know. Just hoping you get through this and keep family relationships intact.

[AngelinaCat]

I have told this story before, but it bears repeating.

Some months or even a year or two after my Aunt died, (I was sole heir), I got a telephone call on a Sunday afternoon during our 'Sunday Dinner'. The caller was a collections agent for a supposedly owed penalty for a lot that my aunt had sold more that four years before her death. This penalty or lien was for 'cleaning the lot because the grass was too high'.

So I had this call during Sunday dinner, and when I found out what the call was about, the caller was treated to an earful about how inefficient their (the caller and the original agency--a county codes office) booking was, that they would DARE try to collect from a woman who was DEAD, and furthermore the lot in question had been sold long before she died. And furthermore, how DARE they interrupt my mother and I at Sunday Dinner!!!

I let the caller, and later on the county agency in question have 'IT'.