death Tag

07 Jan Death and Bankruptcy.

Unless you are a mortician most people do not like to think about death, especially when considering filing bankruptcy. However there are times when death comes into play whether it be the death of the debtor or the death of a loved one. Inspiration for these blogs come from the everyday experiences in my practice and life. The same holds true for this blog. This week a friend of mine passed away. Because her passing was unexpected and sudden and it has given me pause to think of ways of improving my practice and assist my clients in planning for the unexpected. She like many thought she had time to get her personal affairs in order with respect to her final wishes. Unfortunately the universe had a different time line than she did. So it is in her honor that I write this blog.
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29 Dec Debt Does Not Die When You Do, Part Two

Surprise, you're dead. Distinct from 'zombie debt' which should be dead, but refuses to die, your debt does not automatically die when you do. Your family or heirs could be forced to pay the bills that you didn't (or couldn't) pay before you moved on to another plane of existence. You might want to read Part One of this series.

So the widow said to me, "Don't you just write a letter to the credit card companies and make them stop sending bills?" It's not always that easy. If you have a debt that is only in your name and you die without any assets, then maybe those debts would die too. But that is a loaded statement. Let's break it down.

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28 Dec Debt Does Not Die When You Do, Part One

Do you know what your family would do without you? Do they know where to find information necessary to pay your bills? Do you or your family believe that your debts will go away if something happens to you? This is not 'estate planning', it is emergency planning. You and a select group of people around you need basic information on how to handle your finances if you can't.

Recently a good friend and family member died. People die all the time, but this time was different because it was someone my own age. At the same time, a client visited whose husband died unexpectedly at the age of 32. In both cases, the widows had no idea of their family finances and expected that with the death of their husband somehow the family debt would go away.

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