What Happens If You Die With Debt?
If you die with debt, your debts do not automatically pass to your family. Instead, they are paid-if possible-from your estate (the assets you leave behind). If the estate has enough value, debts are settled before heirs receive anything. If the estate does not have enough money, most unpaid debts are written off, and creditors absorb the loss. There are important exceptions. A surviving person may still be responsible if they co-signed a loan, hold a joint account, or live in a community property jurisdiction where certain debts are shared. Otherwise, heirs are generally not personally liable. ...