[hferg3]

Hello,
The state in question is Texas. My father and mothers name is on the house deed. Recently, my father died. The house passes to my mother I think. My father had some credit card debt. The creditors are saying that they can take the house? I thought that they couldn't take the house or car away from my mother. Can they take the house or car to pay my fathers depts? To my knowledge, there is no estate, there's no money.
Thanks for the help.

[ScottGem]

They lie. Depending on how the deed was structured the house probably passed to your mother outside his estate. If they were listed on the deed as Joint Tenants with right of Survorship, that is definitely the case. The ONLY claim they have is on your father's estate. If there was any funds in the estate, they needed to be used to pay off his debts first.

But credit card debt is unsecured. Most states do not allow attaching a primary residence to satisfy such debt.

Did your father leave a will? Did he name an executor? The only thing the credit card companies can do is sue the estate. There would then need to be an accounting of his assets and how they were spent.

Most likely they are bluffing, hoping to intimidate you into paying.

[excon]

Hello h:

Your dad's estate included his liabilities along with his assets. The credit card bill was also inherited by your mother. But, no. They can't take away the house or the car. If your mom doesn't pay, they can sue. If they get a judgment, they can file a lien on the house. That means that your mom will have to pay the lien WHEN she sells the house - not before. If she has a bank account, they can attach that, and if she earns wages, they can garnish that.

However, maybe a refinance of the house to consolidate your dad's debt might be an answer. It's not really a good idea to spread credit card payments over 30 years, but if that's the only option open to your mom...

excon

PS> If the creditors are saying what you say they are, get it on tape or keep the letters. That is in direct violation with the "Fair Debt Collection Practices Act", of 1968". That law prevents them from threatening to do anything that they can't legally do. They can be fined $1,000 per day for every day they violate that law.

You're not going to get that money, but if they're breaking the law, it gives your mom leverage in her negotiations with them.

[Cvillecpm]

Creditors can go against the estate and probably NOT the equity in the house since it passes to your mother.

Your mother needs to discuss homestead options in TX.

[ScottGem]

I disagree with excon on your mom being responsible for the debt. Unless her name was on the card accounts, then the debt goes against the estate, NOT the beneficiaries of the estate.

The house MIGHT have been part of the estate, but not if they held it as Joint tenants. The only way she would be responsible for those debts is if she got money from the estate and used it without first paying off the debts.

[hferg3]

Thanks for the help. I think she is going to get a lawyer.