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I have heard of stories from people who lost a parent and they end up getting stuck with the debt which not only ruins their credit scores, but throws their life out of balance. I am wondering how this is handled and if this is true that when someone passes in your family, like a parent of a child, the adult child must pay the remaining debts.
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The easiest way to put it is that their estate is meant to cover the cost of their debts. So if they own a house, the banks will take ownership of said house regardless of if it was meant to be left to a child or family. If they did not own a home, then there is nothing the creditors can do about it. Only in cases where there are joint accounts is a family member expected to pay.
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I honestly had no idea this was the case. I think it is unfair that if a parent leaves a house for their child or children, the bank can just take the full value of it. They should only be able to take what is owed and the rest of the money for the house should go to the children or if the children decide to keep the house, they should be able to opt to take a lean out on the house to pay for the debt.
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