How to Avoid Paying Inherited Debts
Posted: Wed Feb 19, 2025 3:19 am
When you can't refuse
If you have not checked the deceased's credit history and have already become the owner of his property, you are obliged to pay his debts. If you refuse to answer to the bank, it will have the right to initiate legal proceedings.
In such situations, the inherited property is seized - any transactions with it, including sale and change of ownership, become impossible. If the property has already been sold at the time of the beginning of the proceedings, accounts may be seized and other measures may be applied.
You will still have to answer to the creditor. But no one can pin debt obligations on you that exceed the value of the inherited property. If the deceased owed 1 million ₽, and you received 700,000 ₽, then you will only pay 700,000 ₽.
Can debt grow after the death of the borrower?
The bank can only charge interest - fines and penalties cannot jordan mobile database accumulate. But in order for the bank to stop fining the deceased, it must receive a death certificate. To do this, you need to provide it with this document. Contact the bank as soon as you learn about the loan. Perhaps you will be able to agree on stopping the accrual of interest.
If interest continues to accumulate and you plan to inherit the deceased's property, it is better to start paying off the debt immediately, rather than six months later.
The only way to avoid answering to the creditor is to declare yourself bankrupt. This can only be done if you inherited an apartment that became your only home. In this case, you must actually live in it and have a residence permit. No one can take your apartment from you if your minor children are registered in it.
Bankruptcy is a complicated procedure that involves checking your assets and income. If the court finds out that you earn enough to pay the creditor, you cannot be declared bankrupt. The terms of the loan may be revised, the payment may be reduced, the rate may be lowered. But you will still have to answer.
If you do go bankrupt, you will have a hard time getting a loan for the next seven years—that's how long your credit history is kept. You will also have other restrictions, such as not being able to hold a management position for three years.
If you have not checked the deceased's credit history and have already become the owner of his property, you are obliged to pay his debts. If you refuse to answer to the bank, it will have the right to initiate legal proceedings.
In such situations, the inherited property is seized - any transactions with it, including sale and change of ownership, become impossible. If the property has already been sold at the time of the beginning of the proceedings, accounts may be seized and other measures may be applied.
You will still have to answer to the creditor. But no one can pin debt obligations on you that exceed the value of the inherited property. If the deceased owed 1 million ₽, and you received 700,000 ₽, then you will only pay 700,000 ₽.
Can debt grow after the death of the borrower?
The bank can only charge interest - fines and penalties cannot jordan mobile database accumulate. But in order for the bank to stop fining the deceased, it must receive a death certificate. To do this, you need to provide it with this document. Contact the bank as soon as you learn about the loan. Perhaps you will be able to agree on stopping the accrual of interest.
If interest continues to accumulate and you plan to inherit the deceased's property, it is better to start paying off the debt immediately, rather than six months later.
The only way to avoid answering to the creditor is to declare yourself bankrupt. This can only be done if you inherited an apartment that became your only home. In this case, you must actually live in it and have a residence permit. No one can take your apartment from you if your minor children are registered in it.
Bankruptcy is a complicated procedure that involves checking your assets and income. If the court finds out that you earn enough to pay the creditor, you cannot be declared bankrupt. The terms of the loan may be revised, the payment may be reduced, the rate may be lowered. But you will still have to answer.
If you do go bankrupt, you will have a hard time getting a loan for the next seven years—that's how long your credit history is kept. You will also have other restrictions, such as not being able to hold a management position for three years.