My father recently passed and left my mother with debt of mutliple credit cards that she never knew about. The only thing she has is a trailer and car both of which are worth less then they owe. Should she decalre bankruptcy or just let everything go and the trailer and car repo'd? The only estate was a small life insurance policy which did not even cover burial.

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Originally Posted by sparrow11

my father recently passed and left my mother with debt of mutliple credit cards that she never knew about. The only thing she has is a trailer and car both of which are worth less then they owe. Should she decalre bankruptcy or just let everything go and the trailer and car repo'd? The only estate was a small life insurance policy whcih did not even cover burial.

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In some States the spouse is responsible for the debts; in others the spouse is not responsible unless he/she is a co-signer OR used the credit cards.

What State?

Assuming for a moment that the credit cards were in your father's name only - your mother is not responsible at all for his debts. However, your father's estate is responsible. So any assets that your father may have had must go towards paying off his debts. For example, if the car is in his name then it may have to be sold to pay his debts. But again, if the estate does not have enough assets to cover his debts, the debts do not fall to your mother to have to pay out of her own assets. You can bet that the credit card companies may get very belligerent about this - but unless they can produce a document showing that your mother co-signed for them, it is not her responsibility.

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Originally Posted by ebaines

Assuming for a moment that the credit cards were in your father's name only - your mother is not responsible at all for his debts. However, your father's estate is responsible. So any assets that your father may have had must go towards paying off his debts. For example, if the car is in his name then it may have to be sold to pay his debts. But again, if the estate does not have enough assets to cover his debts, the debts do not fall to your mother to have to pay out of her own assets. You can bet that the credit card companies may get very belligerent about this - but unless they can produce a document showing that your mother co-signed for them, it is not her responsibility.

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This is not correct - in some States (and I could look them up and post them tomorrow) a spouse IS responsible for the debts, particularly those relating to health care and basic living expenses (such as charging household repairs, food, Doctor bills).

This has been asked and answered before.

And if you do go bankrupt, you include the trailer and the car ( unless you want to keep them) you don't let them get repo'ed you include them in the filing.