What happens when an elderly person dies with credit card debt?
After someone has passed, their estate is responsible for paying off any debts owed, including those from credit cards. Relatives typically aren’t responsible for using their own money to pay off credit card debt after death.
Can credit card debt lead to jail?
You cannot be arrested or go to jail simply for being past-due on credit card debt or student loan debt, for instance. If you’ve failed to pay taxes or child support, however, you may have reason to be concerned.
Can a person go to jail for a credit card debt?
There are no longer any debtor’s prisons in the United States – you can’t go to jail for simply failing to make payment on a civil debt (credit cards and loans). You can, however, be taken to court and – assuming you lose – find yourself stuck with a civil judgment ordering you to pay your debt (usually through a wage garnishment).
What happens if my mother stops paying her credit card debt?
Depending on your mother’s financial situation, there’s a chance she may be declared “judgment proof,” which means her creditors may have no legal recourse to collect a debt from her should she decide to stop making payments. But you should seek legal advice before making any decision regarding her card debt.
What happens when seniors can’t pay their credit cards?
With income not likely to rise significantly in the future, and the rising cost of living, many seniors could be facing a difficult situation. Paying off high interest debts such as credit cards will likely be impossible. As seniors age further, the debt crisis can only get worse.
What to do with elderly mom with credit card debt?
Find out if she or you can return any of the merchandise so the account can be re-credited and the balance reduced at least a little. Or hold a fire sale and send the proceeds to the credit card company. If neither is an option, so be it.