Collection Agencies - credit card debt inherited by estate - Canada

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RE: credit card debt inherited by estate

Postby montyloree » Mon Sep 16, 2013 05:21:01 AM

Hi Janis,
WHen a person dies, all of a sudden there is an estate that is created for that person.... if the debts are unsecured, and there are no cosignors, the creditors have to settle for what is left in the estate to complete the debt...

If there was more debt than assets in the estate, then the creditors have no choice than to write off the debt and take that as a loss...
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RE: credit card debt inherited by estate

Postby janis_fransices » Sat Sep 14, 2013 12:20:46 PM

I am confused here when some one dies all debt I thought are paid from the estate However in the case a few years ago my mother in law owed more then she had in the bank and in assets and the lawyer in settling the estate said since there is no more assets to use to pay off the debts the remaining debts were wiped clean No one came after the kids for the rest of the money as the lawyer told us creditors cant do that Am I wrong on this
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RE: credit card debt inherited by estate

Postby lolololo » Sat Aug 31, 2013 07:43:05 PM

You, guys are great and honestly I have no idea why somebody would respond to my questions instead of enjoying their Saturday night; I am really seeking an answer to that since I have a pretty harsh experience of life and I tend to dismiss the notion of help between individuals (I mean- it NEVER happened to me lately!)
About "talk it over with family members or friends"- there are no friends and family members that I can get help from; my parents have to be kept away from this mess (they wouldn't understand, wouldn't know anything and would panic horribly) and ALL "friends" left when we ran out of money and implicitly social status
That lives me with my dog! That's a great friend and family but cannot help much (some show-biz had a saying: " the more guys I meet, the more I appreciate my dog")
Yeah, I'll be fine (maybe short of funds for a while, thou)...
When this is over- one way or another- I might come back and share my experience with the bloggers; is going to take some time
I know I am legally responsible for the debt- that's the whole issue
Thank you for advice and stay all well
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RE: credit card debt inherited by estate

Postby Concerned_Canadian » Sat Aug 31, 2013 07:09:41 PM

lolololo:In my opinion you need to Keep things into perspective. looking at the bigger picture, you're doing much better then a lot of people.

You may be property rich and money poor, but at least you have equity.
This gives you options. Options that a professional can spell out for you.

Regardless, If the debt was made without your knowledge and spent outside the house, it still comes with the estate. How you pay it back is between you, the lender and your financial adviser ( Accountant )

Oddly enough, I must agree with Hanketyblank:
"This is NOT the place to come for situations that have a lot of complicated legal contingencies"

And if you're "just tapping into other experiences", then take my advise. This is not the place to seek advise when your future cannot be predicted with certainty. Get professional help :-) And don't make any split second decisions. Talk it over with a close family member or friend. You'll be fine. Take it slow, and stay in control !!!
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RE: credit card debt inherited by estate

Postby HanketyBlank » Sat Aug 31, 2013 07:13:19 PM

You might want to contact Footloose, an ex-accounting professor who potentially would be the only blogger who might answer the accounting, but not the legal aspects, of your case. However, he rightly left in disgust last year because the forum owner let the blog degenerate into a complete farce with idiots and hackers. The remnants of a forum are kept around in order for credit card spam to generate advertising revenue; that's about it.

Anyhow, the decision of what you should do will be made for you very shortly if the bank proceeds with the lawsuit. At minimum, you'd better hope they stick with Small Claims Court and don't go apply to Divisional Court.

To see what can happen, see Nmorete4's thread below from 2011 over a similar debt with RBC. Read it through and you'll see why I told you to get legal advice.

/site-map-users.html?UserID=5229

Under NO circumstances, listen to anything Stephen Hoddinott (Concerned Canadian) advises.

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RE: credit card debt inherited by estate

Postby lolololo » Sat Aug 31, 2013 05:55:15 PM

There is no insurance whatsoever (we had a life insurance long ago and my husband cancelled it one year after without my knowledge); there is also no mortgage but a secure line of credit- which has no insurance, has higher interest but is so much more flexible than a mortgage; I could "cut my veins" to get the rest of the money and I am "home free" because I have no estate
Do I get this wrong?
Forgot to mention that I don't have a high degree of compassion for either banks, insurance companies or law firms- but that's just me...
I built a good credit score in 14 months, starting from no credit at all and I can borrow some of the money from a personal line of credit I am offered these days
Would anyone suggest I should use it to pay of my husband's debt (made without my knowledge and spent outside the house) or build my life again, build a new business, keep my house and my self-esteem???
Now that's a tough question for a blog
PS- I apologize if I offended anyone; you did your best and I appreciate advice

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RE: credit card debt inherited by estate

Postby HanketyBlank » Sat Aug 31, 2013 05:22:23 PM

The interest in a matrimonial home is part of an estate under Common Law as well as the Family Law Reform Act.
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RE: credit card debt inherited by estate

Postby TJ.brooks » Sat Aug 31, 2013 05:02:22 PM

Surely there was mortgage insurance in place when your husband passed that took care of the mortgage.
Also depending on how your tenancy is spelled out the house ownership would revert completely to you and not be part of his estate.
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RE: credit card debt inherited by estate

Postby HanketyBlank » Sat Aug 31, 2013 04:32:50 PM

As you wish.
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RE: credit card debt inherited by estate

Postby lolololo » Sat Aug 31, 2013 01:03:30 PM

Thanks again everyone
for TJ.brooks- I am joint (and I had to fight 3 lawyers for that because the deed was done irresponsibly- no mention of the type of tenancy!!!- 18 years ago- got my ducks in a row without spending anymore than aggravation); I consider removing my husband from the title only AFTER I finish with the line of credit (borrowing privately will accomplish that as well) because I don't qualify
for HanketyBlank- I know! I am just tapping into other experiences; I don't think I have a bit of money for a lawyer since a good lawyer doesn't work for a bit of money (lot of our clients in the former business were lawyers but...)-but I would talk to an accountant I trust, first thing next week; Concerned Canadian doesn't look to me as a mental case...
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