What happens to my debts if I die?

What happens to my debts if I die?

When you die, your debts do not simply disappear. They are typically paid from your estate before any assets are distributed to heirs.

What if I don't have enough assets to cover my debts?

If your assets are insufficient, the debts may go unpaid. Creditors usually cannot pursue your heirs for your personal debts.

Does this apply to all types of debts?

Yes, this generally applies to most debts, including credit cards and personal loans, but there are exceptions like co-signed loans.

What about student loans?

Federal student loans are typically discharged upon death, but private student loans may vary based on the lender's policies.