When I pass away what happens to my credit card debt?
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When I pass away what happens to my credit card debt?
I’m divorced, retired, on disability, Medicare and Title 19. I own an old car and the furniture in my 1 bedroom apartment. I have no life insurance; the children have a policy on me.
Asked on July 1, 2015 under Bankruptcy Law, Iowa
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Your credit card debt will be paid from the sale of your assets. To the extent that is not enough to pay all of it off, then your creditors will remain unpaid. Your children will not be liable for it.
Note: Life insurance proceeds pass outside of probate, so debt or no debt, the listed beneficiaries will receive the their money directly; it will not be subject to the claims of your creditors.
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