Can creditors go after family members?
Asked by: Ottilie Bradtke | Last update: October 17, 2025Score: 5/5 (10 votes)
Yes—but only if you co-signed on the debt or are a co-owner based on California's community property laws, as detailed above. Another example: An adult child can inherit debt if their name is on a loan or credit cards that their parent had when they died. The remaining balance becomes that of the adult child.
Do next of kin inherit debt?
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
Can a family members be liable for debts?
California is a community property state, meaning that spouses may be responsible for debts incurred during the marriage. This includes any debts that either spouse took on while they were married, even if only one spouse's name is on the account.
How long can creditors go after family members?
Creditors have 60 days to file a claim from the date an estate executor notifies them that the estate is in probate. If the decedent did not name an executor for their will or trust, creditors have four months to act after an estate representative has been appointed by a California probate court.
Can debt collectors go after your family?
A debt collector can contact your spouse. A debt collector can contact your parents or guardian if you are under 18 years old or live with them. A debt collector can also contact your attorney and, if otherwise allowed by law, credit reporting companies (Equifax, Experian, and TransUnion) about your debt.
WHO IS RESPONSIBLE FOR A DECEASED PERSON'S DEBT?
What is the 11 word phrase to stop debt collectors?
The phrase in question is: “Please cease and desist all calls and contact with me, immediately.” These 11 words, when used correctly, can provide significant protection against aggressive debt collection practices.
How long before a debt becomes uncollectible?
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
Can debt collectors come after beneficiaries?
Overall in California, creditors have only one year to collect on a debt. In general, you cannot inherit someone else's debt. But since California is a community property state, when one spouse dies, the other is responsible for those debts.
Can creditors come after children for parents debt?
While creditors have the first chance to make claims on the deceased person's assets, they cannot hold heirs financially liable for the debts. Creditor claims are settled with the estate of the deceased—not the heirs themselves.
Are you obligated to pay a dead relatives debt?
You do not have to take responsibility for debts owed by a deceased person. You do not need to pay their debt, unless one of the situations below describes you: You are a co-signer on the person's loan. You are a joint account holder on a credit card (not just an “authorized user” on the account)
Can creditors harass family members?
Debt collectors are not allowed to harass you or your friends and family. You can and should report violations of the FDCPA to the proper authorities.
Am I not liable the debts incurred by my father?
A son is not personally liable for his father''s debts unless: The debts were incurred for legal necessity or for the benefit of the family. The debts are not avyavaharika (illegal or immoral) Sita Ram VS Radha Bai - Supreme CourtPendela Narasimham VS Pendela Venkata Narasimham - Andhra Pradesh.
What debts are not forgiven at death?
Medical debt and hospital bills don't simply go away after death. In most states, they take priority in the probate process, meaning they usually are paid first, by selling off assets if need be.
Why shouldn't you always tell your bank when someone dies?
If you contact the bank before consulting an attorney, you risk account freezes, which could severely delay auto-payments and direct deposits and most importantly mortgage payments. You should call Social Security right away to tell them about the death of your loved one.
What happens to hospital bills when someone dies?
And in nine “community property” states, including California and Texas, spouses may be equally responsible for debts incurred during the marriage, including medical debt. Other states may have laws that hold spouses responsible for paying certain essential costs, like health care.
What's the worst a debt collector can do?
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
Will a collection agency sue for $3000?
While smaller debts are less likely to result in legal action, there are no guarantees. In many cases, though, debt collectors will prioritize larger debts, as they offer a higher return on the time and legal fees associated with a lawsuit.
Can I be chased for an old debt?
If you borrow money or goods this way, the law that protects your rights is called the Consumer Credit Act. If a creditor hasn't contacted you about a credit debt within the 6 year time limit they can't force you to pay it back.
Can creditors touch inheritance?
Some types of inheritance are protected from creditors, which may include retirement or life insurance funds. However, states CreditCards.com, collectors may be able to seize certain assets to repay your debts, including money that was left to you in a will.
Can debt be passed to next of kin?
A deceased person's debt doesn't die with them but often passes to their estate. Certain types of debt, such as individual credit card debt, can't be inherited. However, shared debt will likely still need to be paid by a surviving debtholder.
How long after someone dies can creditors collect?
In California, it is critical to act quickly once a debtor has passed away. As a creditor, you have only one year from the date of the death to file a creditor claim in court. Past this date, you cannot enforce your lien rights.
What happens if you never pay collections?
If you continue not to pay, you'll hurt your credit score and you risk losing your property or having your wages or bank account garnished.
How likely are debt collectors to sue?
Debt-collection cases are also a rising share of civil court cases, according to the same report. According to a Consumer Financial Protection Bureau report, you have a higher chance of being sued in a debt-collection lawsuit if: The statute of limitations hasn't expired or the debt is new.
Can you dispute a debt if it was sold to a collection agency?
The Fair Debt Collection Practices Act (FDCPA) grants you the right to request verification of the debt and dispute it if you believe there are errors or discrepancies — and it's often a smart move to do so.