The country’s debts live on

07 Feb The country’s debts live on

The stimulus package now in Congress, whereby the country is going to borrow money to give out to some segment of our populace to combat recession, made me think about the differing consequences of living beyond one’s means.

If you are an individual, your debts die with you. If you are a sovereign nation, the debts get passed on to your children. My children will be dealing with the nation’s debts long after I am gone.

A favorite trick of debt collectors when the debtor has died is to tell the heirs that they are responsible for their parent’s debts. That, of course, is rubbish. The decedent’s assets must be devoted to paying his or her debts before the heirs take their inheritance. But if the assets are insufficient to pay the debts, the heirs don’t inherit the obligation.

But Uncle Sam’s debts are our legacy to our children.

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.

Cathy Moran, Esq.

I'm a certified specialist in bankruptcy law (California State Bar Board of Legal Specialization) practicing in the San Francisco Bay Area for more than 30 years. In addition to practicing bankruptcy law, I train new practitioners at Bankruptcy Mastery.
No Comments

Sorry, the comment form is closed at this time.