The Essential Next Steps If A Will Leaves You In Debt

Typically, a will is a source of money. After all, your loved ones want to ensure that you’re financially stable once they are no longer around. However, it can also leave you with the debts of the bereaved, and it’s a horrible experience to endure. Not only have you lost a friend, but now you must figure out how to pay back their arrears. Ouch. Although it sounds incredibly tough, and it can be, there are steps you can take to ensure your financial freedom. To learn more about them, check out the advice below.

It might be the difference between staying in the black and avoiding the red.

Use Their Assets

The first port of call is to use the assets they leave behind the clear the balance of a credit card or bank loan. Not everyone has them, but there are usually items with a high value that can be sold, for instance, a property, car, or jewelry. Selling them and getting the money in time to avoid late fees and missed payments can be challenging, which is why same day online loans might be helpful. You can use the finance as a short-term measure to clear the debt, as and when the funds from the bereaved’s assets reach your account.

Check Whether They’re Secured

Unfortunately, not all debts are created equally. Some are secured, and others are unsecured. Hopefully, the obligations your loved one leaves behind are the latter. Why? It’s because they are wiped away if there is no collateral. A typical example would be a credit card balance. Therefore, there’s no reason to worry about your finances taking a hit, so long as you provide evidence that the estate has no assets and no one else’s name is on the contract. Examples of secured loans include mortgages and student debts.

Look For Another Name

A second name can be a gift and a curse. If the name is yours or that of a family member, then it doesn’t impact the circumstances. If anything, you’re more liable than ever for the arrears. However, if the loan was taken out by your loved one and a friend, then the responsibility will fall on that person’s shoulders. Although it’s not nice to contact someone and inform them of their duties, they need to accept the consequences of their actions. The bereaved’s estate will have to contribute if there are funds, but at least it will only be half.

Speak To A Lawyer

Among everything that lands at your feet, you could be expected to learn the basics of the legal system. As a non-specialist, it’s not fair to ask you to understand complicated legislation and jargon, which is why you should speak to an attorney. A lawyer will be expensive, yet he or she could save the family a lot of money in the long-term due to their knowledge. Plus, there might be enough leftover from the will to take care of these expenses.

That’s why people take out life insurance policies.

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