FIL's Credit Card and the balance we owe

[katleigh9030]

What is the name of your state? FL and FIL is in IL

I apologize if this gets posted twice. I posted earlier, but it never appeared.

My FIL was kind enough to give DH a credit card when we were having financial problems due to a job loss and other issues.

FIL called the company, added DH’s name to the account so he could get an additional card for him. DH never signed anything from the credit card company nor gave them his social security number.

Currently, DH and FIL each owe about $10,000 on the card.

Sadly, FIL was recently diagnosed with cancer. He has been given 3 months to live.

I am confused as to what will happen to this debt when he dies. Will DH be responsible for FIL’s portion? Or will we just be responsible for our own? Also, do we continue to pay the CC company for our portion or will the estate handle that and we will have to repay the estate?

Thank you for your help.

[Debt Guy]

This is a little complicated. Generally, if you did not sign the credit agreement, then you are not obligated on the debt.

However, some states have laws that make you liable for the debt if you "benefited" from the goods and services that were purchased.

Following the death of your FIL, his debts should be paid out of the proceeds of his estate. If he has no estate, you can take the position that it was his debt and you are not obligated, provide the credit card company with a copy of the death certificate and then sit back and see what happens.

Credit card companies don't like losing large sums of money. You should expect that they will begin to hound you for payment. I can't tell you that they will sue you and I can't tell you that they won't.

Is there any way to resolve all this before the death of your Father In Law?

Others on this board may have different thoughts and, if so, they will chime in.

[katleigh9030]

I am unsure if there will even be enough money to pay for his funeral/medical expenses. Let alone his $10,000 of the debt.

Unfortunately, we are not able to resolve this prior to his death. We can't afford to pay our portion nor can he afford to pay his.

Thanks.