Ring of Death-Debt Collections
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What happens to the debts of a family member upon their death? Generally, when you die, your debts will die with you, unless there is a co-signor on the loan. Or, if there is a lien, such as a mortgage or car loan, the lenders have rights to the property and can take it back unless the surviving family members pay the debt.
The Wall Street Journal published this article recently, which details the unconscionable tactics that death collectors will employ to collect debts from the surviving family members. Many are surviving widows who will likely pay, though they're not legally obligated to do so, just to make the phone calls stop. The reason we are likely to see an increase in this type of debt collection is,
"One thing isn't in dispute. Dwindling retirement savings, falling home values and high unemployment mean that more Americans are dying while still in debt, says Sally Hurme, an elder-law lawyer with AARP, an advocacy group for people 50 or older."
Don't be fooled into thinking that you're morally or legally obligated to pay the debts left behind when a family member dies. Ask for the creditor to identify themselves and note the date, time and who called in a collections log. Save the mailed notices in their envelopes and consult with a Debt Collection Lawyer in your area to determine whether you have a right to sue harassing debt collectors.
