Behind the death of a family, among the concerns of their loved ones is what will happen to the debts that he left Is it necessary to pay them? Do they no longer exist after death? We clarify it below.
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One of the most common beliefs is that when a person dies their debts disappear, but this is not the case, since there are financial obligations that can be maintained, so institutions must be notified of the death as soon as possible, in order to avoid charging interest.
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) points out that, usually, no person has a legal obligation to pay the debt of someone who has died, although there are exceptions if:
- You are jointly liable, that is, you signed as a guarantor or guarantor
- You were the spouse of the deceased person
- You are the executor and have been named responsible for settling the debt
In financial products, such as Credit cards and the joint mortgage, Certain requirements must be met so that the debt of the deceased person does not continue, so it must be taken into account that:
The Condusef establishes that, in order to know the requirements that allow the cancellation of a credit card, It will depend on the financial institution and the type of card that has been contracted.
Once the type of product that the holder had is known, the family member must contact the financial institution to request the cancellation of the plastic, which will not be valid if:
- You are more than three months behind in payments
- The card is used days after the death of the holder
For this kind of mortgage credits is considered the entry of both spouses, por so both people are covered by life insurance. If either of them dies, the insurance will settle the debt, as long as:
- The policy includes the spousal joint coverage scheme
- There is no delay in payments
As for what happens to the money Bank account of a family member after his death, the Condusef assures that, if there is no movement after six years, resources will go to public charity.
To avoid inheriting debt problems, it is recommended to inform the closest circle about the financial commitments you have, this in order to provide the necessary tools to avoid generating a major problem and to know how to act in the event of death.
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