My aunt passed away in Sept. She still owed on her car, she was renting from a friend. We sent a death certificate to the bank for the car and returned the keys. They came and picked up the car. We know she was receiving Social Security check and she had credit card debt. We know she doesn't have any money. What should be done. We don't want to be responsible for her debts, but would like finalize things. Help.
JessieBelle's correct in that you aren't responsible for your aunt's debt. When you do call her creditors to inform them of her death get the information you need and then request that they not call you because once you call them they will have YOUR phone number and you will become the contact person for that account. And her creditors will start calling YOU. If you request that they not contact you they won't. I found this out the hard way when I called my dad's creditors after he died.
If really truly no $, no assets, there is nothing to be done. And you have no responsibility to any of her debtors.
Within 10 days after her death, I received a letter from some company with something like "estate settlement" in the name. I opened and read the letter, and it appeared they were trying to get me to call them to settle mom's estate, and that they would assist with it. Out of curiosity, I called them. Ha! They are NOT an estate settlement assistance - they are a debt collector. They were trying to get payment on one of her credit cards - 10 days after her death. They kept saying that *I* was not personally responsible for the debt, but would I like to set up a payment plan?? I kept repeating to them that there was NO money - the estate was so small as to be almost non-existent - so a payment plan was not possible. They just kept asking the same thing. After several phone calls and letters, they finally stopped harrassing me. I've never seen anything like that - ever. It was extremely upsetting and frustrating.
Creditors can be predators (no pun or rhyme intended) and like wild predators will turn on you if they sense you're a potential prey. Then they'll hassle and hound you.
This is also why you should familiarize yourself with the Fair Debt Collection Practices Act so you know your rights and don't become a target for the credit card holders. Just google FDCPA and check out the hits.
Was there a will? If so, who's the Personal Rep or Executrix/tor (as they're called in some states)? You should work together with this individual.
With no funds, the Estate is what's known as "judgment proof" - no assets and no funds.
If the collection agency continues to harass, you have a timeline which can support action if the attorneys general of states involved decide to go after these money hounds. If not, it's just your word vs. theirs.
And I've found from experience that they lie. And I'm sure they alter the recordings b/c some have continued to call even after I've advised them they have the wrong number, yet they deny having that information in their files and have alleged things I've never said.
Also, for anyone who does challenge the debt in writing, be sure to ask for a copy of the judgment and any assignment to another collector. The FDCPA allows that.
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