Will I have to sale our home to pay my deceased husband's credit card debt?
Me and my husband bought a home together in California that we paid off. Both of our names are on the deed. He passed away recently and has credit card debt in his name only. He had no money or other property that will cover the debts. I still live in our home and do not want to sale it to pay for credit card debt and can't afford to pay on my SSI benifits fixed income.
First off--do not despair. You are almost certainly safe from forced sale of your home.
This a complex area of the law, and in many ways counterintuitive. A little known Family Code Section states that yes, the surviving spouse IS liable for SP debts. HOWEVER--the creditors commonly back of is you provide them with a copy of the death certificate.
Additionally, California has strong protections for your home--to wit: "In California, a Declared Homestead Exemption can be recorded at any time, even after a spouse has passed away.
The exemption amount is based on the county's median home price, which can range from $300,000 to $600,000 in additional protection.
Recording the Declared Homestead Exemption is a fairly straightforward process that can usually be done through the county recorder's office.
Doing this proactively, before any creditors try to make claims, can help solidify the protection for the surviving spouse's home.
So in the situation described, the surviving spouse should definitely consider recording a Declared Homestead Exemption as soon as possible. This could potentially shield up to $600,000 in home equity from being used to pay off the deceased spouse's debts.
The key is acting quickly, before any creditors try to take action. Recording the exemption." )i complied BASED ON MY KNOWLEDGE OF THIS TOPIC.)
So, if you record a homestead Exemption, you will probably be fine (if the creditors don't back off.)
Good luck to you.
This is general advice. You are anonymous. If you PM me I won’t know what it’s about. I know no one reads these. I wish they did.
I'm sorry to hear about your loss.
Regarding your husband's credit card debt, there are several factors to consider:
1. Community Property State: California is a community property state, which means that most debts incurred during the marriage are considered joint debts. However, debts incurred by one spouse before the marriage or in their name only are usually considered separate debts.
2. Estate Responsibility: Typically, the deceased person's estate is responsible for paying off their debts. If the estate doesn't have enough assets to cover the debts, the creditors usually have to write off the debt. They cannot force you to pay out of your own assets unless you were a joint account holder or co-signer on the credit card.
3. Home Protection: Since the home is in both your names, it is considered community property. Creditors may not force the sale of your home to satisfy your husband's debts, especially if it was his debt alone and there are no other significant assets.
4. Debt Collection Practices: Creditors might still attempt to collect the debt, but they must adhere to fair debt collection practices. They cannot harass you or make false claims about your liability.
5. Consult Legal Help: Given the complexities of the situation and the importance of protecting your home, it is advisable to consult with a probate attorney or a legal aid organization in California. They can provide specific advice tailored to your situation and ensure that your rights are protected.
It’s important to get professional advice to navigate this situation correctly and protect your interests.
If my answer is "BEST ANSWER" and/or "HELPFUL" please acknowledge and mark it so. I appreciate your comments and feedback, I have more than 25 years of successful legal experience with cases like yours. My responses are often general as all the facts are unknown to me; specific answers require knowledge of all the relevant facts of your case. My answers are developed, in some cases, using artificial intelligence which I review and edit before posting my answers.
ALSO wrong. FC 910 states that the community IS responsible for a debt incurred by EITHER SOUSE incurred BEFORE OR DURING THE MARRIAGE.
spouse--i am useless at typing .
Sorry for your loss. In your vulnerable situation, debt collectors may say whatever they need to say in order to get your money. I suggest that you do not talk to them. Do not pay any debts before you sit down with an attorney to review your legal and financial situation in detail.
As a general rule, you are not legally responsible for the separate debts of your late husband. Furthermore, your home is protected from all creditors by the California homestead exemption. What you do with legal title to your home depends upon how title is currently vested. If title is held in "joint tenancy", you receive 100% clear title by recording an Affidavit of Death of Joint Tenant along with a certified copy of the Death Certificate. This is filed with the County Recorder's Office. If it is held as "community property", there is a different procedure and probate administration may be involved. As far as suing you for the balance on the account unless they can prove that you are on the account, they cannot sue you personally. If they want to sue the estate of your husband, there is a procedure for their filing a claim with the probate court but this is not easy for them.
If suggest that you not communicate with any debt collectors. Do not give them any information. Do not send them any documents. Most importantly, do not send them any money. If you make, or promise to make, a payment, in any amount, the debt collector may try to use this as your admission that you owe the debt.
I'm so sorry but yes, the surviving souse (ie CP) IS responsible for the debts,
FC section 9109(a)
You are not responsible for your husband's debts unless you have consented to be. Your husband's estate might be held accountable for debt. You have options for asset protection/creditor negotiation. See an attorney.
If my answer is the "BEST ANSWER" and/or "HELPFUL" please mark it accordingly. The information given is general and should not be relied upon as legal advice because legal advice cannot be given without full consideration of all relevant information relating to the reader's situation. It is your responsibility to retain a lawyer to analyze the facts specific to your situation and to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are general only and are not meant to create an attorney-client relationship.
FALSE!!!
