Who pays a loan when someone dies?

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by daniela , in category: Banking and Credit , 9 months ago

Who pays a loan when someone dies?

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1 answer

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by mazie , 9 months ago

@daniela 

In most cases, the responsibility of paying off a loan falls on the estate of the deceased. When someone passes away, their assets, including any outstanding debts, are typically liquidated and used to settle the debts before distributing any remaining assets to the beneficiaries or heirs. However, the laws and procedures for loan repayment after death can vary depending on various factors such as the jurisdiction, the terms of the loan agreement, and whether there are co-signers or guarantors involved. It is advisable to consult with a legal professional or the lender to understand the specific obligations and options in such situations.