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Father passed, has credit card bills.

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bellyshaker

Guest
I am from Oregon. My father passed away a few weeks ago and we are going through all of the paper work. He had an insurance policy that my brother and myself are beneficiaries of. He has some credit card debt. Are we responsible for paying that out of his life insurance money? He left his home to us also. It will be paid off. Can the creditors take that away from us or put a lein on it? Please help. Thanks
 


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advisor10

Guest
AUG. 16, 2001

DEAR BELLYSHAKER:

Please clarify:

(1) How much is the credit card debt?
(2) How much is the insurance policy?

It would be wise to pay off the credit card debt from the insurance policy money if you can afford to do so. If you can't pay all of the debt, then pay at least 1/2 or 2/3 of it, and the rest will be written off as an uncollectible bad debt.

The creditors can put a lien on the house so it would be better to eliminate that possibility by getting rid of the credit card debt. Also be advised that the credit card companies, if they want to, will be reviewing the probate file at some point in the future to see if the estate has enough assets to satisfy the debt.
 

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