#DebtConsolidationLoan #DeceasedDebtor #FinancialPoA
Understanding the Situation
Losing a loved one is never easy, and dealing with financial matters in the aftermath can be overwhelming. If your brother-in-law, who was named as the debtor in a debt consolidation loan, has passed away, you may be wondering what steps to take next.
Seeking Clarity on the Debt
It is important to communicate with the lending institution where the debt is held. Inform them of the passing of your brother-in-law and request for the debt to be cancelled. You should also inquire about the loan agreement to understand the terms and conditions of the loan.
Challenges Faced
In some cases, lenders may be reluctant to cancel the debt or provide information without proper documentation. This can be frustrating, especially when trying to navigate through a difficult time.
Exploring Options
As the Financial Power of Attorney for your sister, you have the authority to act on her behalf in financial matters. You can continue to advocate for the cancellation of the debt and request for the loan agreement from the lender.
Dealing with Assets
Since there is no estate left by your brother-in-law, and your sister is the beneficiary of the home and life insurance, it is important to understand how these assets may impact the debt consolidation loan. Consulting with a legal or financial advisor may provide clarity on this matter.
Final Thoughts
Navigating through the complexities of handling a debt consolidation loan with a deceased debtor can be challenging. By staying proactive, seeking clarity, and exploring your options, you may be able to find a resolution that is beneficial for your sister and her financial well-being.
Remember, communication is key in these situations, and reaching out to the lender with the necessary documentation and information can help facilitate the process of resolving the debt.
Debt doesn’t get canceled, but are they taking payments from a joint account?
This is kind of tricky because if I give authorization to ABC Loans to pull money from my account I can tell them that authorization is revoked. Then if they continue I can contact my bank and tell them the transaction is unauthorized and have valid grounds for a chargeback. My wife who’s not on the loan may not be able to give that instruction.
If it’s a joint account best option is have her open her own account and transfer whatever money she is entitled to. She may need the direction of a lawyer. Although CFPB says this there there could be different laws in her state:
> Most joint bank or credit union accounts are held with “rights of survivorship.” This means that when one account owner dies, the money passes to the surviving owner, or equally to the rest of the owners if there are multiple people on the account. Or, the account could be titled as “tenants in common.” This means that after the death of one of the owners, that person’s share of the account passes to their heirs, either as described in their will or per their state’s laws.
https://www.consumerfinance.gov/ask-cfpb/what-happens-if-i-have-a-joint-bank-account-with-someone-who-died-en-1101/
If she is joint on the account she may also be able to contact the bank and place a stop payment or total ACH block, but there may be fees involved with that and there is not 100% certainty the bank will allow it or that it will work as intended.
If it is not a joint account the bank should be contacted to at minimum lock down the account and stop all transfers since the owner is deceased.
There is no such thing as Beneficiary of his home. If she’s inheriting it, that was in his estate or titled to a trust? And what State is this, as common law or community property? In CA, property titled to both is completely owned by both (community property State). For common law, it’s different. Might be time for an attorney. Or, look at the loan for a death clause.
“They have a $4.5 loan at 23.9% interest.”
They?
Or, just pay it.