What happens to my debt when I die?
April 28th, 2011 | 
Author: 
Ashlee Meree asked:
Hi. I am 21 years old, and I found out that I am terminally ill. What will happen to my debt when I die? I have 6 credit cards, all in my name alone. I have student loan debt, which is, also, in my name only. I also have a car which is completely paid off and in my name. Will the government take my car to help pay for the debt, or does the debt die with me? I live in the state of Minnesota, if that makes a difference.
Credit Card Loan Consolidation
Hi. I am 21 years old, and I found out that I am terminally ill. What will happen to my debt when I die? I have 6 credit cards, all in my name alone. I have student loan debt, which is, also, in my name only. I also have a car which is completely paid off and in my name. Will the government take my car to help pay for the debt, or does the debt die with me? I live in the state of Minnesota, if that makes a difference.
Credit Card Loan Consolidation
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Consolidating Credit Card Debt
They start going after your family. Death won’t stop ‘em. :/
Student Consolidation Loans
The debt will have to be paid off by your estate. Given that you may have medical bills as well, I would sell the car and try to pay off the debts so the survivors do not have to bear the additional burden.
Credit Card Debt Consolidation
Your executor pays off whatever debts they can.
They do not go after your family.
Credit Card Debt Settlement
I’m sorry to hear of your illness.
When someone passes, any assets they own are used to pay any debts outstanding. This is done by the executor of the estate. If there aren’t enough assets, then that’s it. Family is not responsible, nor is anyone else. In your case, the car would be sold to pay off any debts to the extent possible, and the remaining debts are erased.