Inheritable Debt

A recent article on CNBC entitled  “Who inherits your debt: It’s complicate” discusses several issues associated with debt of decedent.  Upon death, personal liabilities of the decedant are paid with the decedent’s remaining assets through a probate court filing.  Generally, a creditor must file notice or claim with the probate court stating that a debt is owed by the decedent.  Creditors may lose the right to collect on a claim if not properly filed or filed after the expiration of a statute of limitations period.  Always consult with an attorney should you be contacted by a creditor seeking payment of debt of a deceased family member.