US Legal Forms
Legal Resources
Questions & Answers
Debts and Credit
If I owe money and the person dies, do I still owe money?

If I owe money and the person dies, do I still owe money?

Full question:

If I owe money and the person dies, do I still owe money?

Category: Debts and Credit
Date: 04/07/2025
State: Alaska

Answer:

Yes. It would be collectible by his heirs or his estate if the person who loaned you the money dies before you pay the loan off. The loan would be evidenced by a promissory note.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

When a parent dies who is responsible for their debt?

When a parent dies, their debts do not automatically transfer to their children. The responsibility for the debt typically falls on the deceased's estate. If the estate has enough assets, those will be used to pay off the debts. If not, the debts may go unpaid, and heirs are generally not liable unless they co-signed on the loans or are otherwise legally responsible. It's important to consult with an attorney for specific guidance based on your situation.

Can debt be forgiven after death?

Debt forgiveness after death depends on the type of debt and the estate's financial situation. Generally, debts are paid from the deceased's estate before any inheritance is distributed. If the estate lacks sufficient assets, some debts may go unpaid, effectively resulting in forgiveness. However, secured debts or co-signed loans may still require payment. Consulting with an attorney can provide clarity on specific cases.

How long after someone dies are you responsible for their debt?

You are not personally responsible for a deceased person's debts unless you co-signed or are otherwise legally obligated. The estate is responsible for settling debts, and creditors typically have a limited time to make claims against the estate, which varies by state. In many states, this period can range from a few months to a year. It's advisable to consult with an attorney for guidance based on your state's laws.

Am I obligated to pay my deceased parent's debt?

As a general rule, you are not obligated to pay your deceased parent's debts unless you co-signed the loans or took on the responsibility through legal means. The deceased's estate is responsible for settling debts, and creditors can only claim against the estate's assets. If the estate does not have enough assets, the debts may go unpaid. Always consult with an attorney to understand your specific obligations.