Debra Booher &Associates Co., Lpa Click here to get your free Legal evaluation
Call Us Today Toll Free

How death impacts debt

Ohio residents who pass away are likely to do so while still in debt. According to December 2016 data provided by Experian, 73 percent of consumers who died owed money to creditors. On average, an individual died with $61,554 when a mortgage balance was included. Without the mortgage balance, the average individual had $12,875 when he or she passed on.

Of those who were in debt when they died, 68 percent had a credit card balance while 37 percent owed money on a mortgage. Auto loans, personal loans and student loans were also on the list of common types of debt an individual had when he or she died. The average credit card debt balance was $4,531 while the average student loan balance was $25,391. In most cases, the debt does not go away when a person dies.

If there is enough left in an estate to pay creditors, they will get paid. While federal student loan debt is cancelled when a borrower dies, private student loan lenders tend to come after the estate for payment. In most cases, surviving friends and family members are not responsible for a deceased person's debts. However, they may be responsible for any debt that they cosigned for.

One way to avoid dying with debt is of course to take care of it when alive. When it isn't possible to pay it down in full, those who are looking for debt relief may wish to file for bankruptcy with the assistance of an attorney. Doing so may make it possible to get a stay from creditor collection efforts, and in many cases, much of the unsecured obligations will be discharged within months under Chapter 7 or after the successful completion of a Chapter 13 repayment plan.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Cuyahoga Falls Office
1350 Portage Trail
Cuyahoga Falls, OH 44223

Cuyahoga Falls Law Office Map

Beachwood Office
3401 Enterprise Pkwy.
Suite 340
Beachwood, Ohio 44122

Map & Directions

Independence Office
4700 Rockside Rd
Suite 415
Independence, Ohio 44131

Map & Directions

Westlake Office
1991 Crocker Rd
Suite 600
Westlake, Ohio 44145

Map & Directions

Canton Office
4450 Belden Village Street NW
Suite 204
Canton, Ohio 44718

Map & Directions

Ravenna Office
2633 St. Rt. 59
(Orchard Plaza)
1st floor
Ravenna, Ohio 44266

Map & Directions