When an individual dies unexpectedly, he often leaves behind unpaid debts. According to CreditCards.com, credit card companies cannot legally hold family members liable for credit card debt a deceased loved one owed--even if the family member is the deceased's spouse. Although the credit card company cannot legally pursue you for payment, you can negotiate with the credit card company for a reduced balance to pay off the outstanding credit card debt your spouse incurred prior to his passing.
Step 1
Ask the executor of your spouse's will if the credit card company has filed a claim against her estate. If the credit card company has already filed a claim and your spouse's estate contains the funds to pay off the credit card debt in full, the company has no incentive to negotiate with you. Wait until all probate claims have been paid before negotiating a settlement.
Step 2
Talk to an attorney in your state about what rights the credit card company has regarding your spouse's property, life insurance, 401(k) and other assets. These assets typically don't pass through probate court, but state laws differ regarding whether creditors can pursue them after an individual's death. Knowing what the credit card company can and cannot do is crucial when negotiating an acceptable settlement.
Step 3
Contact the credit card company via phone and ask to speak with a supervisor. Asking for a supervisor moves the process along more quickly since many representatives aren't authorized to discuss or grant settlements.
Step 4
Inform the supervisor your spouse carried outstanding debt on his credit card when he passed away and you would like to settle that debt. Make a settlement offer lower than you actually intend to pay and negotiate up from that point.
Step 5
Instruct the supervisor to send you a copy of the formal settlement offer once you reach an agreement. Request that, upon payment, she also mail you a zero balance statement illustrating that you settled your deceased spouse's debt with the company.
Step 6
Read and examine the settlement offer when it arrives to ensure that it accurately reflects the agreement that the credit card company supervisor made with you over the telephone. If the settlement offer is accurate, make a copy of the offer and submit your payment to the company along with the copy illustrating the settlement.
Step 7
Place the settlement offer and proof of payment in a safe place where you can easily access them. Include the zero balance statement when it arrives. This protects you in the event the credit card company later submits the unsettled balance to a collection agency.
Tips and Warnings
- If your spouse was insolvent and neither had an estate nor assets that the credit card company can seize, you can use this to your advantage when negotiating. Because the credit card company has no recourse against you, refusing your settlement simply means the company doesn't get paid.
- If you are a joint account holder on any of your spouse's credit cards, they did not belong solely to your spouse--they belonged to both of you. Thus, you remain responsible for the entire balance and a settlement may not possible. Being an authorized user on your deceased spouse's credit card doesn't make you responsible for repaying the debt, even if you made some of the purchases. The account does, however, appear on your credit report. Not making payments or settling the account for less than the balance will adversely impact your credit score. If you live in a community property state such as Texas, you may be responsible for paying your spouse's credit card bill, even if the card wasn't in your name. Each community property state has different regulations for dealing with the debt of the deceased.
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