There is simple and easy answer to the question about what might happen to a person's debt when he dies without any assets, properties or insurances. It is somewhat true that any kind of debts will effectively die with the debtor but there are also instances that it is possible that his family such as the spouse and children will inherit the debts. The debts will depend only upon its nature as well as the estate of the debtor.

Actually, a debt which only belongs to one person, such as consumer loans like credit cards, could become void or null when that person dies. A lot of companies providing consumer loans like credit cards simply withdraw the existing debts because they cannot oblige the families such as his wife and children to pay for the debts. This situation often exists with different consumer loans such as car auto loans and credits cards, but there are still exemptions.

But if there are assets and properties, consumer loan companies could really take actions to compel the family of the debtor to pay for the debts. They could get the car from an estate company or maybe foreclose a deal on real estate if there are mortgages involved. But one should consider that in every state there is a specific law regarding this problem. It is best to seek a consultation with an estate planner or a probate attorney to find out how much the estate is liable.

A lot of debts that are under a debtor's name, which include car loans, credit cards, utilities, insurance policies, would be be shut off when he dies. But there are instances that the debts are under a joint account, such as those made by spouses. If the husband dies, the wife would be the one to pay for the said debts. She could also be responsible to pay for tax bills and other utility bills.

In some states and countries, a wife could be held responsible for a deceased husband's car loans, credit cards and other debts. The consumer loan companies could take normal debts collection every month but they cannot go after the assets and properties left behind by the deceased debtor. If the funds are still in the estate, they are still safe from the several debts collections efforts. It is really possible that if another person's name is listed as one of the authorized persons to use a credit card, he becomes responsible for the unpaid balance. This is the main reason why it would be wise to exclude any other individual from a credit card account to steer clear from such circumstances.

Whoever in the family dies, those who are left behind must really deal with the different debts, even if they may have nothing to do with it. This may be contrary to what many individuals believe. Family members left behind are not held liable with the unpaid debts but they could be deprived of some amount coming from the estate because this could be made payments.