Losing a loved one is emotional and overwhelming—but it can also bring confusion about practical matters, especially debt. If you’re planning your estate or settling a family member’s affairs, you may be asking: What happens to debt after someone dies? Do creditors go away? Can they come after your family?
In Georgia, how a person’s debt is handled after death depends on the size of their estate, whether they had a will, and the type of debt owed. Here’s what you need to know to protect yourself or your loved ones—and how an estate planning lawyer can make all the difference.
Debts in Georgia Don’t Disappear Automatically
When someone dies, their debts don’t just vanish. Instead, creditors can make claims against the estate — the money and property left behind. The estate becomes responsible for settling these debts during the probate process, not individual family members. But that doesn’t mean families are unaffected.
If there’s not enough money or property to cover all the debts, some may go unpaid. In those cases, creditors are typically out of luck. However, not every situation is that simple.
Who’s Responsible for Paying Debts?
Generally, only the estate is responsible for paying off a person’s debts. Surviving family members don’t inherit debt, even spouses or adult children—unless:
- They co-signed a loan or credit card
- They’re listed as a joint account holder (not just an authorized user)
- The debt is tied to jointly owned property or accounts
- They live in a community property state (Georgia is not one)
The personal representative or executor of the estate is in charge of identifying debts and notifying creditors. If there’s a will, that person will be named. If not, Georgia courts will appoint an estate administrator.
Why Do Some Debts May Survive Death?
These debts often need to be resolved during probate:
- Mortgage debt: If someone inherits a home, they may need to continue making payments to keep it.
- Credit card balances: These are unsecured debts, meaning they’re typically paid only if the estate has enough assets.
- Medical bills: Hospitals and providers can file claims against the estate.
- Car loans: The vehicle may need to be returned or sold if the estate can’t cover the balance.
- Personal loans: These are repaid only if estate funds are available.
Student loan debt, particularly federal loans, is typically discharged upon death—but private student loans may not be.
What Happens if the Estate Can’t Cover the Debt?
If someone passes away with more debt than assets, Georgia law has a specific order for paying debts:
- Estate administration costs
- Funeral and burial expenses
- Taxes
- Secured debts (like mortgages)
- Unsecured debts (credit cards, medical bills)
Once the estate is depleted, remaining debts may go unpaid—and creditors cannot pursue family members for them unless they are otherwise legally liable.
Planning Ahead Can Ease the Burden of Debts
Estate planning doesn’t just help distribute property—it also helps prepare for debts. A comprehensive plan can:
- Identify and separate personal from joint debts
- Name a trusted executor who understands your wishes
- Establish a trust to protect certain assets
- Ensure real estate is titled correctly to avoid probate delays
With proper planning, your family won’t be left in the dark—or on the hook—for debts they don’t owe.
What to Do If You’re Managing a Loved One’s Affairs
If a family member recently passed away, here’s what to do:
- Gather documentation – Identify all known debts and assets
- Do not start paying bills from your own funds
- Speak to a probate attorney before making financial decisions
- File the will and open the estate in probate court
- Notify known creditors (this may be legally required)
You don’t have to handle these responsibilities alone. A Georgia estate planning lawyer can help you navigate the process and avoid costly mistakes.
FAQs about Debts in Georgia
Can creditors sue me personally after my spouse dies?
In Georgia, surviving spouses are generally not liable for a deceased spouse’s debts unless they co-signed a loan, are a joint account holder, or have otherwise agreed to be legally responsible. Creditors may attempt to contact you, but they cannot force you to pay unless one of those exceptions applies.
Can debt collectors keep calling me after a loved one dies?
Debt collectors can reach out to the estate’s representative, such as the executor, but they cannot harass or mislead surviving family members. If you feel pressured or misled, speak to an attorney. The Fair Debt Collection Practices Act (FDCPA) protects you from abusive practices.
What happens to debts if there’s no will?
If a person dies intestate (without a will), their estate still goes through probate. A court-appointed administrator will be responsible for paying debts and distributing remaining assets according to Georgia’s intestacy laws.
Can a creditor take life insurance proceeds or retirement accounts?
Generally, no. Life insurance policies and retirement accounts with named beneficiaries bypass probate and go directly to the designated individual. However, if no beneficiary is named or the estate is listed as the beneficiary, those funds could be used to pay debts.
Is it ever helpful to disclaim an inheritance because of debt?
In some situations, yes. If the estate has more debts than assets, disclaiming an inheritance might prevent you from inheriting property that’s tied to debt or from becoming entangled in the probate process. Always speak with an estate planning lawyer before making this decision.
Protect Your Family with an Estate Plan
Whether you’re planning ahead or trying to settle a loved one’s affairs, understanding how debt works after death is essential. At Wilbanks Law Firm, we’re here to help you protect your legacy, minimize probate complications, and give your loved ones peace of mind.
We can help you draft a will, establish powers of attorney, and ensure your estate is prepared for whatever comes next.
Call (706) 510-0000 or contact us online to schedule your estate planning consultation.
We proudly serve Commerce and communities throughout Northeast Georgia.
