Credit card debt is not automatically wiped out when a person dies. Whether a credit card company can recover its debt depends on state law, the amount of property in the decedent’s estate, and if anyone else co-signed the obligation.
Your debt belongs to you and you alone; it is not passed on to your family members when you die. The laws regarding debt after death are defined at a state level, so there's really no umbrella answer for everyone. By cosigning, both parties assume full responsibility for the loan.
Life insurance may be one of the most important purchases an individual (and/or his or her business) will ever make. You can avoid common mistakes by following the simple checklist that accompanies this commentary.
The Garn-St. Germain Depository Institutions Act of 1982 allows your heirs, if they are closely related to you, to take over mortgage payments. However, if your heir is not related to you, and your contract has a due-on-sale clause, the mortgage lender has the right to ask for the mortgage balance due.