Short answer: a person's debts do not go away when they die; they are owed by and paid from the estate, the money and property they left (FTC). Family members, including spouses, are not responsible for the debt unless a specific exception applies, such as having cosigned the loan (CFPB). If the estate cannot pay, the debt usually goes unpaid (FTC).
Who may owe the loan
| Your situation | Do you owe it yourself? |
|---|---|
| Cosigner on the loan | Yes. A cosigner shares responsibility for the debt (CFPB); see what cosigning means (FTC) |
| Joint borrower or joint account holder | Yes, as a person who shared responsibility. Being an authorized user on a credit card is different (CFPB) |
| Surviving spouse | Not as a rule. Exceptions: your state law requires spouses to pay a particular type of debt, or you live in a community property state that requires using jointly held property to pay the debts (CFPB) |
| Executor or administrator | You pay the debts from the estate, not from your own money. You can be responsible if you do not follow your state's probate laws (FTC) |
| Other relatives and heirs | No, unless one of the exceptions above applies (CFPB) |
If no one cosigned or shared the account and no other exception applies, only the estate owes the debt (CFPB). Rules on spouses and estates come from state law, so ask a lawyer about your own case.
If the estate cannot pay
If there is no money or property left in the estate, or the estate cannot pay, the debt will generally not be paid. For example, when state law requires the estate to pay survivors first, there may be nothing left for debts (CFPB). Do not pay a deceased relative's loan from your own money just because a collector asks; first find out whether you owe it.
What debt collectors may and may not do
- A collector may contact the spouse, a parent if the person was a minor, a guardian, the executor or administrator of the estate, or a confirmed successor in interest (12 CFR 1006.6(a)).
- It is illegal for a collector to say or imply that you must pay from your own money, unless one of the exceptions above applies, and illegal to harass you (CFPB).
- Unless the collector knows otherwise, calls before 8 a.m. or after 9 p.m. your local time are treated as inconvenient (12 CFR 1006.6(b)(1)).
- If you tell a collector in writing that you refuse to pay or want it to stop contacting you, it must stop, except to say it is ending its efforts or that it may use or intends to use a specific remedy (12 CFR 1006.6(c)). The FTC suggests sending the letter by certified mail (FTC).
- If a collector breaks these rules, you can report it to the FTC or your state attorney general (FTC); see how to file a loan complaint.
Steps for the family
- Find the loan papers and see who signed: the borrower alone, a cosigner or a joint borrower.
- The executor or administrator settles the debts from the estate (FTC), so tell the lender in writing who that is and pass its letters on.
- Check whether the loan had credit life insurance or debt cancellation that may pay it off; see credit insurance on a personal loan.
- If payments were set up to come out automatically from the deceased person's account, see how to stop automatic loan payments.
- If you are a cosigner and you cannot pay, contact the lender before the next due date; see what happens if you miss a loan payment.
- For questions about whether you are responsible, the CFPB suggests talking with a lawyer, including through a lawyer referral service or legal aid (CFPB).
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.