| Q. If a husband has $10,000 credit card debt in his name and he dies, will his debt be erased
A. The debt is not "erased". The debt should be paid out of the proceeds of his estate.
Q. or his wife have to pay?
A. Texas is a community property state. That means that both spouses are legally liable for all debts incurred during the marriage -- regarless whose name is on the debt. Each is liable today and either would continue to be liable after the death of the other.
Q. If he and his wife own a house, can the credit card companies put a lien on it?
A. In Texas, the answer is no. But, with a big catch. In Texas, homestead is exempt from attachment by creditors. However, in Texas homestead is not a public record but is a "state of mind". While the judgment does not technically attach to the real property, if they go to sell the property, no title company will write a title policy for the new buyer since they are not mind readers and can't determine the "state of mind" of the seller. So, the judgment must go away before they can sell or refinance the property.
I know that last is confusing. Sounds weird but it really does work that way. | 
08-28-2006, 09:50 AM
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