While debt relief is a goal most people aim for in their lives, it may not always be met, so they could leave some debt behind. Parents who are currently carrying significant debt might be wondering what happens to it after they pass away. Will their adult children inherit any outstanding balances? Learn more about the circumstances that will decide the answer in the guide below as well as how a debt relief attorney can help.

The Estate Is Usually Responsible for Debts

After a debtor passes away, creditors generally have between two and six months to file a claim. The creditors will seek payment not from the adult children of the deceased, but from the estate itself. Both cash and any monetary value of assets are used to pay off these debts before inheritances are distributed among heirs. So in most situations, adult children are not burdened with the bills of their deceased parents.

Some Exceptions to Be Aware of

There are specific circumstances in which the above would not apply. If a child were a cosigner on any debts a deceased parent accumulated, they would now be liable for those balances. Mortgages that have not yet been paid off are also typically handled differently after the property owner passes away. Their children are often not required to pay off the entire mortgage in full immediately, but they may need to keep making payments until the home is sold.

How an Attorney Can Help

A debt relief lawyer will help you find ways to reduce debt now, so you don’t leave your heirs with financial burdens down the road. Debt settlement and bankruptcy are avenues worth exploring. Not only will you get a fresh financial start, but you'll also be taking care of the loved ones you will someday leave behind.

Discover paths to debt relief and reduce the likelihood your children will one day be responsible for your outstanding bills by seeking guidance from Greg Dunn, Bankruptcy and Debt Relief Attorney. For over 22 years, he has provided residents of Honolulu, HI, and across Oahu with bankruptcy assistance and debt settlement services. Call (808) 524-4529 or visit him online to schedule a free initial consultation today.