This is a general question because I do not have that much information. However, a family member (wife's dad) has run a business in years past, but recently had a stroke that has inhibited his being able to communicate and understand fully. Basically, he is unable to logically run the business and make decsions. However, it has come to our attention that he has accummulated some serious debt. My wife and I are not connected to this business, but I would very much appreciate some feedback as to inherting debt in this situation. He is in his 50's and has decent credit for now. He will be visiting with a bankruptcy attorney soon for some advice, but I am not even sure his business was set up to where this is even an option.

The basic question is could we potentially inherit this down the road even though we are not connected to the debt or the business before he had his stroke?

Thanks in advance!

Hello aaron:

Nope. You can't inherit debt. It dies with him. Or, said another way, his estate will be responsible for any outstanding debts, but if his estate can't cover them, his creditors are out of luck.

excon

Possibly good it is a business debt and not a personal debt. I do believe it makes a difference as my husband has his own business which will soon be defunct due to lack of sales and the auto industry. He was informed a few years ago when he inquired, a bankruptcy would not effect him personally. But there are loopholes I understand. This is Canadian law by the way so there may be a big difference in rulings.

What exactly do you mean his business was not set up to to where it isn't an option? Do you mean it was not a truly incorporated business. May be a problem.