What happens to your debt when you die?

the estate (savings, investments, real estate) pays for any remaining debt. i THINK that unless there is a Living Will (which would dictate what is done with the estate) then debts are settled thru the state..thats called Probate. in other words the state he lives in would sell off the house and that money combined with his other assets would go to paying off the debts he owes. IF there is any money left, that will get divided to the heirs. If there is no money left and not all debts have been paid, i dont THINK the family is responsible for it UNLESS their names are also on the accounts. like with a credit card. if your father passes and your mothers name is also on the card account and there wasnt enough money after Probate to pay off that debt, then SHE would be liable for the amount owed. it might depend on what state you live in too. mind you this is what i THINK and i dont have any first hand knowledge (knock on wood). perhaps you could sit down with one of those free legal advice/assistance places, tell them you've had a scare and want to make sure that you know what needs to be done when the time comes.

At present,i dont have any debt.Before spending money lavishly we have to think twice about the future.It is better to save small amount for the future needs.