If someone dies and leaves behind a debt load,
the executor or administrator of his estate or wealth is responsible
for paying off and handling the debts. If the dying person did
not write a will, then the spouse automatically assumes responsibility
of both his estate and all his debts. If the deceased person did
not have a spouse nor a will that states who shall be the executor
of his estate, then usually a close relative assumes responsibility
for the task.
This includes:
-
- Mother
- Son
- Daughter
- Grandparent
If none of the above people exist, then the State
by Law will appoint an executor of his estate. What happens when the
estate the deceased person leaves behind has no value? Then any creditors
shall be notified of the death of the person and they will discharge
all the debts, and not pursue any collection efforts. Check with your
local State Attorney on rules regarding discharged debts.
Here are 2 pieces of Law that will give more guidance
on this matter:
» "Whenever any person indebted to the United States is insolvent,
or whenever the estate of any deceased debtor, in the hands of the executors
or administrators, is insufficient to pay all the debts due from the
deceased, the debts due to the United States shall be first satisfied;
and the priority hereby established shall extend as well to cases in
which a debtor, not having sufficient property to pay all his debts,
makes a voluntary assignment thereof, or in which the estate and effects
of an absconding, concealed, or absent debtor are attached by process
of law, as to cases in which an act of bankruptcy is committed"
(Section 3466)
» "Every executor, administrator, or assignee, or other person,
who pays any debt due by the person or estate from whom or for which
he acts, before he satisfies and pays the debts due to the United States
from such person or estate, shall become answerable in his own person
and estate for the debts so due to [269 U.S. 483, 487] the United States,
or for so much thereof as may remain due and unpaid." (Section
3467).
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