Harassing the living for the debts of the dead on clarkhoward.com

The debt collectors are behaving badly again. This time they're hitting up surviving family members for money that's owed by the dead!

The New York Times reports that some collection agencies specialize in this somewhat morbid pursuit. Collectors even receive "sensitivity" training to deal with grieving relatives. They'll speak in hushed tones on the phone like a funeral director and refer you to a legitimate grief counselor if necessary.

In most cases, you have no legal obligation to assume the debt of a late spouse, sibling or parent. But the collectors will never tell you that.

The only states where there is a possibility that a surviving spouse may have some responsibility for a debt are "community property states" -- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

In such states, an executor/executrix or administrator (in the event there is no will) may be responsible for assessing the estate to see if there's money to pay out to creditors.

But in general, if you get a call from these slimeballs, know that you likely don't owe them a penny.

What others are saying

thanks
thank you for this information. my father passed away, his house is worth nothing, his vehicles are junk. so there is no money, there was no insurance either.
my problem is the executor is not doing what she is suppose to be doing, the attorney is doing all the work, not only that the executor had lost all of the income tax stuff. my father did income tax for years, he always a refund. but the executor had lost all the stuff and is now blaming it on someone else.
By sue harmon @ 06/02/09 09:02:09 PMreport abuse
re: My Mother's Death
Laura, you should not have paid off any of your Mother's debts, whatsoever. You could have compromised your own credit by paying the rude doctor that small amount at all, thus 'obligating' yourself to paying that bill.
By Val @ 04/21/09 12:58:00 PMreport abuse
Clark does hold the individual resposible
"Clark always holds corporations to high ethical and moral standards but never individuals. Individuals get a free pass."
Clark always holds the individual responsible and does not tell them not to pay a debt.
By T Davis @ 03/11/09 06:10:30 PMreport abuse
Executor v. relative
dcg, yes, the executor is charged with settling debt from the estate, but some collectors are contacting relatives who do not have this obligation and leading them to believe that they are responsible for payment.

In fact, I recently read a WSJ article about bogus debt collectors who are now scamming grieving relatives by searching the obits and "collecting" on non-existent debts by leaning on the survivors in their time of grief.

Bottom line: If it's not your responsibility to settle the debt, refer the collector to whoever does have that responsibility. And in any case, be sure to verify that the debt is real.
By Copyrider @ 03/11/09 04:54:31 PMreport abuse
Medical Debt
It should also be noted that in most cases medical debt of the deceased can be written off by the doctor/insurance billing the deceased. I called all the doctors and insurance companies to inform them of the passing of my Mother. They simply asked for a copy of the death certificate and promptly wrote off the debt.
By Shawn @ 03/11/09 01:24:49 PMreport abuse
Unbelievable
My husband recently got a call from a debt collector looking for a deceased friend of ours. We are guessing my husband was listed as a refernce. He told the guy that our friend was deceased and the collector hung. Less than an hour later the same company called back. That called in a round about way accused him of being our friend. Which just made my husband furious. This went on for about a week and each time they would try a new angle. After some number tracing,on the last call my husband asked to speak to a supervisor and told them he knew who they were and would sue them for harassment if they did not stop calling.
By Sylvia @ 03/11/09 12:15:32 PMreport abuse
distributing estate
If you're executing an estate - you should pay the debts off first, then distribute what (if anything) is left... Those debts - even unsecured - are legitimate -- and if everyone dodged those debts, then we'd have a lot more trouble getting the elderly any amount of service.

Debts are debts. Do the right thing and pay them.
By dcg @ 03/10/09 10:43:52 PMreport abuse
collecting from dead
if a person dies and has any net worth (assets minus liabilities) then the executor has to pay off the creditors to the extent of this net worth. there is a pecking order. I think funeral expenses come first, maybe probate costs, then unsecured creditors last. the executor has to post a legal notice and every creditor has a right to present their case. If an executor fails to do so, i am not sure of exactly what happens, but either the executor could be liable or the beneficiaries of the estate might be forced to give back to the estate what they got to first settle valid claims. so be careful out there in saying that unsecured creditors of a dead person are out of luck. they are not..unless the executor follows the correct legal route and these creditors fail to file a claim within the time allowed.
By brian @ 03/10/09 10:19:56 PMreport abuse
My Mother's Death
I paid off most of my mother's debt when she died, even though I didn't have to; however, refused to pay one of her doctors. She owed the jerk $200.00, and his office manager called me at work the week after she died demanding to know when they would be paid. They were extremely rude, and I thought completely insensitive. (They must have found my name/number listed in her records.)

This doctor then started sending me her bill and called me a second time saying they would sue. I sent the doctor a check for $1.00 for each bill and they started charging me a past due fee of $2.50. I stopped paying, and they finally gave up and went away. Had they been a little more sensitive, I would have paid them.
By Laura @ 03/10/09 10:17:39 PMreport abuse
It's not always a spouse
Buzz, how about the debts of your brother or sister in law? These creeps are trying every angle to collect, not just from the spouse of the deceased. I was executor of my Mother's estate, and I specifically said no to all attempts at collecting unsecured debt. Her modest estate was distributed for the benefit of surviving family.
By Eric @ 03/10/09 07:07:22 PMreport abuse
Moral Obligation
Clark always holds corporations to high ethical and moral standards but never individuals. Individuals get a free pass. But as far as I am concerned, if my wife died, I would have a moral responsibility for her debts. And if I died, she mine. Legallys maybe not, but morally yes.
By Buzz G @ 03/10/09 05:11:56 PMreport abuse

thanks

thank you for this information. my father passed away, his house is worth nothing, his vehicles are junk. so there is no money, there was no insurance either.
my problem is the executor is not doing what she is suppose to be doing, the attorney is doing all the work, not only that the executor had lost all of the income tax stuff. my father did income tax for years, he always a refund. but the executor had lost all the stuff and is now blaming it on someone else.

By sue harmon @ 06/02/09 09:02:09 PMreport abuse

re: My Mother's Death

Laura, you should not have paid off any of your Mother's debts, whatsoever. You could have compromised your own credit by paying the rude doctor that small amount at all, thus 'obligating' yourself to paying that bill.

By Val @ 04/21/09 12:58:00 PMreport abuse

Clark does hold the individual resposible

"Clark always holds corporations to high ethical and moral standards but never individuals. Individuals get a free pass."
Clark always holds the individual responsible and does not tell them not to pay a debt.

By T Davis @ 03/11/09 06:10:30 PMreport abuse

Executor v. relative

dcg, yes, the executor is charged with settling debt from the estate, but some collectors are contacting relatives who do not have this obligation and leading them to believe that they are responsible for payment.

In fact, I recently read a WSJ article about bogus debt collectors who are now scamming grieving relatives by searching the obits and "collecting" on non-existent debts by leaning on the survivors in their time of grief.

Bottom line: If it's not your responsibility to settle the debt, refer the collector to whoever does have that responsibility. And in any case, be sure to verify that the debt is real.

By Copyrider @ 03/11/09 04:54:31 PMreport abuse

Medical Debt

It should also be noted that in most cases medical debt of the deceased can be written off by the doctor/insurance billing the deceased. I called all the doctors and insurance companies to inform them of the passing of my Mother. They simply asked for a copy of the death certificate and promptly wrote off the debt.

By Shawn @ 03/11/09 01:24:49 PMreport abuse

Unbelievable

My husband recently got a call from a debt collector looking for a deceased friend of ours. We are guessing my husband was listed as a refernce. He told the guy that our friend was deceased and the collector hung. Less than an hour later the same company called back. That called in a round about way accused him of being our friend. Which just made my husband furious. This went on for about a week and each time they would try a new angle. After some number tracing,on the last call my husband asked to speak to a supervisor and told them he knew who they were and would sue them for harassment if they did not stop calling.

By Sylvia @ 03/11/09 12:15:32 PMreport abuse

distributing estate

If you're executing an estate - you should pay the debts off first, then distribute what (if anything) is left... Those debts - even unsecured - are legitimate -- and if everyone dodged those debts, then we'd have a lot more trouble getting the elderly any amount of service.

Debts are debts. Do the right thing and pay them.

By dcg @ 03/10/09 10:43:52 PMreport abuse

collecting from dead

if a person dies and has any net worth (assets minus liabilities) then the executor has to pay off the creditors to the extent of this net worth. there is a pecking order. I think funeral expenses come first, maybe probate costs, then unsecured creditors last. the executor has to post a legal notice and every creditor has a right to present their case. If an executor fails to do so, i am not sure of exactly what happens, but either the executor could be liable or the beneficiaries of the estate might be forced to give back to the estate what they got to first settle valid claims. so be careful out there in saying that unsecured creditors of a dead person are out of luck. they are not..unless the executor follows the correct legal route and these creditors fail to file a claim within the time allowed.

By brian @ 03/10/09 10:19:56 PMreport abuse

My Mother's Death

I paid off most of my mother's debt when she died, even though I didn't have to; however, refused to pay one of her doctors. She owed the jerk $200.00, and his office manager called me at work the week after she died demanding to know when they would be paid. They were extremely rude, and I thought completely insensitive. (They must have found my name/number listed in her records.)

This doctor then started sending me her bill and called me a second time saying they would sue. I sent the doctor a check for $1.00 for each bill and they started charging me a past due fee of $2.50. I stopped paying, and they finally gave up and went away. Had they been a little more sensitive, I would have paid them.

By Laura @ 03/10/09 10:17:39 PMreport abuse

It's not always a spouse

Buzz, how about the debts of your brother or sister in law? These creeps are trying every angle to collect, not just from the spouse of the deceased. I was executor of my Mother's estate, and I specifically said no to all attempts at collecting unsecured debt. Her modest estate was distributed for the benefit of surviving family.

By Eric @ 03/10/09 07:07:22 PMreport abuse

Moral Obligation

Clark always holds corporations to high ethical and moral standards but never individuals. Individuals get a free pass. But as far as I am concerned, if my wife died, I would have a moral responsibility for her debts. And if I died, she mine. Legallys maybe not, but morally yes.

By Buzz G @ 03/10/09 05:11:56 PMreport abuse

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Mar 10, 2009 -- Harassing the living for the debts of the dead

What others are saying