Credit card debt after death

[Heisenberg37]

Hi everyone,

I’m reaching out because my father recently passed away, and I'm trying to navigate the financial aspects that come with this. He had some credit card debt of HDFC , and I’m unsure about my responsibilities regarding this debt.


Is credit card debt typically covered by any kind of insurance, or am I personally liable for paying it off?

I’d appreciate any guidance or advice on how to handle this situation.


Thank you in advance for your help.
@TechnoFino @anirban.choudhury

 

[Samarth343]

Sorry for your loss..

 

[SSV]

Hi everyone,

I’m reaching out because my father recently passed away, and I'm trying to navigate the financial aspects that come with this. He had some credit card debt of HDFC , and I’m unsure about my responsibilities regarding this debt.


Is credit card debt typically covered by any kind of insurance, or am I personally liable for paying it off?

I’d appreciate any guidance or advice on how to handle this situation.


Thank you in advance for your help.
@TechnoFino @anirban.choudhury

Technically speaking you are not responsibile for your father's credit card debt unless you had given an explicit guarantee..

But the banks generally will be after you, as you are the inheritor of his assets.. but I believe they can not force you legally.. they will only try to recover the dues by exerting some pressure.. all this in my view.. and I am not a legal expert. . consult any civil lawyer..

I will give you some logical examples:

1) For example a father has only 5 cr debts and nil assets, will the son pay off all his debts?
2) another example: suppose a father and a son had differences and living apart, then before his death he sold all his assets and given to someone he likes and makes 10Cr debt.. Will son be responsibile??
.
.
.etc.

All these are arbitaroly assumed by me..

 

[oshan]

All depends on amount of Debt and Amount your are inheriting
Banks wont file court cases for few lakhs, they will just forget it after 6 month, till then they will keep calling you and occasionally pay a visit.
However law says, if a person has debt and he dies, it has to be repaid by the one who inherits to the extent of inheritance.
It only holds true if the amount is in 10s on crore else they wont even think of going legal, first they would trouble you with full repayment, after 3 months offer a 50% settlement offer after 6-12 month they would stop running after you.
They cannot affect your cibil or credit standing in anyway, do not sign any documents or hand them over any identity proof even if asked.

 

[SSV]

Hi everyone,

I’m reaching out because my father recently passed away, and I'm trying to navigate the financial aspects that come with this. He had some credit card debt of HDFC , and I’m unsure about my responsibilities regarding this debt.


Is credit card debt typically covered by any kind of insurance, or am I personally liable for paying it off?

I’d appreciate any guidance or advice on how to handle this situation.


Thank you in advance for your help.
@TechnoFino @anirban.choudhury

Technically speaking you are not responsibile for your father's credit card debt unless you had given an explicit guarantee..

But the banks generally will be after you, as you are the inheritor of his assets.. but I believe they can not force you legally.. they will only try to recover the dues by exerting some pressure.. all this in my view.. and I am not a legal expert. . consult any civil lawyer..

I will give you some logical examples:

1) For example a father has only 5 cr debts and nil assets, will the son pay off all his debts?
2) another example: suppose a father and a son had differences and living apart, then before his death he sold all his assets and given to someone he likes and makes 10Cr debt.. Will son be responsibile??
.
.
.etc.

All these are arbitaroly assumed by me..

Most of the details are here .. check this article..

Are legal heirs liable to pay their parents' loan outstanding amount after their death?

Jeetendra Pathak, a LIC agent, had borrowed money from his office. After he father died, his daughter began receiving legal papers asking to repay his debt. Here's what happens to a borrower's debt after he or she passes away, as well as the major legal heirs' penalties if the borrower has an...

economictimes.indiatimes.com

 

[anirban.choudhuryanirban.choudhury is verified member.]

Hi everyone,

I’m reaching out because my father recently passed away, and I'm trying to navigate the financial aspects that come with this. He had some credit card debt of HDFC , and I’m unsure about my responsibilities regarding this debt.


Is credit card debt typically covered by any kind of insurance, or am I personally liable for paying it off?

I’d appreciate any guidance or advice on how to handle this situation.


Thank you in advance for your help.
@TechnoFino @anirban.choudhury

I’m really sorry to hear about your father’s passing. My deepest condolences to you and your family.

I’m not a legal consultant, but here’s my two cents based on what I know. In India, credit card debt typically isn’t passed on to family members. The responsibility to pay off the debt lies with the deceased's estate, meaning any assets left behind by your father might be used to settle the outstanding balance.

If there aren't enough assets in the estate to cover the debt, the bank might have to write it off. It’s essential to inform the bank about the situation and provide them with the necessary documents, like the death certificate, so they can guide you through the next steps.

 

[RAMESH BABU N]

My 30+ yrs of CC experience says that the monthly outstandings of (most of the Seniors and Super Seniors) are always paid without any dues. And, they rarely go in for EMIs.

If they have FD/SB/Locker accounts with the same Bank - and if they are all linked - then the bank has the RIGHT OF GENERAL LIEN to set off the CC dues n release only the balance.

If they have only CC relationship, then the bank may choose to WRITE-OFF such small outstandings. However, if the outstandings are huge - then the Bank will proceed for recovery through other means.

Unlike earlier times - today - any banker can know (thanks to PAN, Aadhaar linkages) - about your deposits at other banks, your securities - shares n bonds n MFs - or other assets - like land n buildings - and can easily put a lien or at least mark such assets/funds. If the legal hiers do not pay n clear the dues - the settlement of such funds/assets will be prolonged n proves really costly.

It all depends on a lot of factors.

 

[Sudip]

My deepest condolences to you and your family.

there was a discussion which happened in TF long back, hope it helps as well.
Link: https://www.technofino.in/community/threads/credit-card-dues-after-life.22619/#post-514692

 

[desiviru]

First of all, sorry for your loss.

These days, banks have legal rights to recover from legal heirs or if bank has FD or other banance available, they can recover that dues from it and give rest to nominee. So little chance of escaping it. As CC are unsecured loans, banks can't pressurize you in personal capacity to pay but if you are inheriting anything that belonged to deceased, you are liable to pay.