How to Settle Unsecured Credit Card Debt for the Deceased
When an individual dies, his grieving family members often must deal with the debts he left behind. An unsecured credit card debt isn't bound to any property that the credit card company can seize for nonpayment of the debt. The creditor's only option to collect is to contact the deceased individual's family about the debt. In most cases, as long as the deceased did not hold a joint credit card account with someone else, no one is legally liable for the debt.
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Instructions
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Check with the executor of the deceased individual's estate to find out whether the credit card company filed a claim against the estate in probate court. If the creditor already has a claim for payment pending, wait to attempt a settlement to avoid accidentally paying the credit card company twice for the same debt.
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Decide how much of the deceased individual's debt you are willing to pay. You cannot be held liable for any portion of the debt, therefore negotiating a settlement amount with the credit card company isn't necessary. The company has no grounds on which to negotiate.
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Call the credit card company and explain that you wish to settle your deceased loved one's credit card balance. Inform the representative of how much you are willing to pay toward the debt. Do not negotiate a settlement amount with the credit card company. It must accept your offer, file a claim against the deceased's estate or write off the debt.
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Ask that the credit card company mail you a written statement of settlement. A written statement serves as proof that the debt belonged to the deceased and will be settled. This prevents the credit card company from selling the unpaid debt or transferring it into another family member's name in order to collect.
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Obtain a money order for the settlement amount and mail it to the creditor. Although it is unlikely that a company would blatantly violate the law and pursue you for the deceased's debt, it does occasionally happen. Paying with a money order keeps your banking information private.
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Tips & Warnings
Never provide the deceased individual's creditors with any personal information other than your name. Unethical creditors can use your personal information to pursue you for the debt.
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- Photo Credit flowers at grave site image by toschphoto from Fotolia.com
