When you pass away, what exactly happens to your debts? Do they pass on to your family, or do they disintegrate and simply go away?
Basically your debts become part of an estate that need to be repaid. If there’s money left in the estate, then it’ll go towards paying off any debts. However, once that money runs out, those debts may go unpaid. Protections also exist for people living in homes where mortgages are unpaid, and for cars, as long as someone continues paying for it, then no one will try to repossess it. Estates will handle credit card debt, and in joint accounts, the other members will be responsible.
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