Although no one even wants to think about it, sometimes the person who takes out a cash loan dies. What happens with debts then? Do they pass on to someone, and if so, how should they be reacted? We will try to answer these questions in the text below. Situations of this type are extremely difficult, but we should remember that the path of action results from legal acts and we must stick to it.
Death of the Borrower
Suppose for the purposes of the article that the borrower died. Usually, the repayment obligation is transferred to the co-borrowers, if any. If not, then the question of loan insurance arises. If the cash loan was insured, you should report to the appropriate insurance company. Either the bank or the heirs do it. The insurance company examines the case and, if it considers that compensation is due, pays it. Thus, the heirs cease to be responsible for paying the debts of the deceased because they are settled by the insurer. If the loan was not insured, the heirs are obliged to repay it, but only if they accept the inheritance. In this situation, we must report to the bank branch along with the decision to acquire the inheritance or a notary deed certifying our inheritance.
How to defend yourself against debts?
If the debts of the deceased are too large for us or we simply do not want to pay them, regardless of their size, we can renounce inheritance, ie reject the inheritance. We have half a year since the death of a person whose property and debts are inherited. It is also possible to accept an inheritance with the benefit of inventory. In this situation, we are responsible for the debts of the deceased person up to the amount of his property, thereby protecting our own goods. Before we accept the inheritance, we should think carefully about our decision. Let’s remember that we have six months to take it. However, if during this period we do not make any statement informing about our decision, then it is considered that we accept the fall in full with all debts.