Does debt die???

[chyann]

What is the name of your state? IN

My mother is in IN and has no will, that I know of. She has refinanced her home several times and now owes more than the home is worth because every refi went into a different credit card and she maxed them all out.

She thinks when she dies we six children will all inherit a portion of her debt. I say her debt will die with her. What is the right answer???

 

[moburkes]

Neither.

The children will NOT owe her debt.

The debt will not die with her. Her estate will be responsible for her debt. Her house can be sold to pay the debts. Whatever debts remain, just remain.

 

[chyann]

That's what I meant by her debts will die with her. Her house appraises at $82,000 but she owes $122,000 on her credit cards. She's only 74 so the hoouse can still appreciate but her debts can still go up too.

 

[BelizeBreeze]

That's what I meant by her debts will die with her. Her house appraises at $82,000 but she owes $122,000 on her credit cards. She's only 74 so the hoouse can still appreciate but her debts can still go up too.

sounds like you need to walk away and put mom to rest with her credit cards.