Legal Question Re: Debt For Elderly

[Wish Upon A Star]

DH's grandfather passed away 1/20/04. DH's grandmother was left in some serious debt. When he passed away he left nothing, no estate, no life insurance, no pension, nothing. He has 3 loans that cannot be repaid, they were only in his name. DH's grandmother lives in a low income elderly housing, she is 82 years old.

I just finished typing letters of hardship to the three loan companies. Does this do any good? Will they take DH's grandmother to court to try to get the money that her husband borrowed?

Anyone know? By the way, she didn't know of any of these debts until she found the paperwork and bills after he died. It's pretty sad . . .she thought he had life insurance, she thought she'd be able to live comfortably, but unfortunately he didn't think about that at all.

 

[The Mystery Machine]

I am so sorry for you loss and situation. I believe when you are married you share the debt.

Perhaps filing bankruptcy would be an option? I am not sure.

I hope things work out for Grandma.

 

[jel0511]

Unless the debt was in both of their names, the debt will die with the person. They will TRY to collect from the surviving spouse, but they really have no legal recourse, as there was no estate. The debts are always first subtracted from any monies left in an estate, since there wasn't one, there is nothing to collect. I'd hire an attorney and one quick letter from him/her will end this nightmare. Nothing you will write will deter them, they are bill collectors after all.

 

[Cindy B]

Well, I have seen this happen in two cases when people have passed away.


My MIl passed away, was divorced from FIL, and had lots of debt..car payments, mortgage payments, credit card debt, etc...

So far nothing about insurance.

My DH's uncle passed away, single as well, with 90K debt to the IRS.

I'm not sure what is going to happen in either case.

 

[Toby'sFriend]

How sad. It is tragic that anybody would have to deal with that so soon after losing a spouse.

I would suggest contacting a local Senior Center or United Way to see if you can find a Lawyer willing to donate some time to give her advice.

edit to add: Some states all marital assets and debts are considered joint -- Community Property states and in some states they are completely seperate. It really is important that she get the advice of somebody who knows exactly which laws apply.