Am I responsible for someone else's debt?

Asked by: Donavon Gislason  |  Last update: February 13, 2025
Score: 4.4/5 (55 votes)

Generally, family members are not responsible for debts incurred by other family members. So, for example, you would not be responsible for the debts incurred by your parents or adult children. However, there are exceptions.

What is the 777 rule with debt collectors?

Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.

Can I be held responsible for my partner's debt?

In almost every case, you will not be held responsible for debt your spouse has incurred before your marriage. The only exception to this rule is if you become a joint account holder after marriage. If you take this step, you will accept ownership of the debt and be held accountable for its repayment.

Does power of attorney mean you are responsible for debts?

Accepting a POA doesn't make you liable for your relative's debts.

Can I be held responsible for my brother's debt?

Individual Liability: Debts are usually tied to the person who incurred them. If one sibling takes out a loan or credit card in their name, the other siblings are not legally obligated to pay that debt. Co-Signing: If a sibling co-signs a loan or credit agreement, they become legally responsible for that debt.

Am I responsible for someone else's debt when they used me as a reference?

34 related questions found

Can you be responsible for someone else's debt?

Generally speaking, debt can't usually be transferred to another person. If you're not named on the credit agreement and you didn't sign it, or put your name down as a guarantor, then in most cases, the debt can't be transferred to you.

Am I legally responsible for my siblings?

Elder Law Guides

Download our in-depth guides on elder law topics. No, sisters are not legally responsible for one another. So, assuming that they were not already living together, one sister does not have to take in the other sister when she is discharged from the hospital.

What three decisions cannot be made by a legal power of attorney?

What a power of attorney can't do
  • Change a principal's will.
  • Break their fiduciary duty to act in the principal's best interests.
  • Make decisions on behalf of the principal after their death. (POA ends with the death of the principal. ...
  • Change or transfer POA to someone else.

Who is responsible for debt after death?

The executor — the person named in a will to carry out what it says after the person's death — is responsible for settling the deceased person's debts. If there's no will, the court may appoint an administrator, personal representative, or universal successor and give them the power to settle the affairs of the estate.

Can a power of attorney transfer money to themselves?

An agent can only transfer money to themselves if the POA document explicitly allows it. Self-transfers without explicit authorization are generally considered a breach of fiduciary duty and can lead to legal consequences.

Can you take over someone else's debt?

Speak to Creditors

Once you decide to take on the other person's debt, you should call the creditor directly and express your wishes to be added to their account. In most cases, you can simply say that you want to be added to the account as a guarantor.

Am I liable if my husband owes money?

Most states use common law (also known as equitable distribution), which dictates that married couples don't automatically share personal property legally. In other words, you aren't responsible for your spouse's debt unless you took it out together as a joint account, or you cosigned on it.

What constitutes financial infidelity?

Financial infidelity is when couples with combined finances lie to each other about money. Examples of financial infidelity can include hiding existing debts, excessive expenditures without notifying the other partner, and lying about the use of money.

What is the 11 word phrase to stop debt collectors?

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

What are 2 things that debt collectors are not allowed to do?

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

What is the golden rule of debt?

In the golden rule, a budget deficit and an increase in public debt is allowed if and only if the public debt is used to finance public investment.

Why shouldn't you always tell your bank when someone dies?

If you contact the bank before consulting an attorney, you risk account freezes, which could severely delay auto-payments and direct deposits and most importantly mortgage payments. You should call Social Security right away to tell them about the death of your loved one.

Can creditors go after family members?

Yes—but only if you co-signed on the debt or are a co-owner based on California's community property laws, as detailed above. Another example: An adult child can inherit debt if their name is on a loan or credit cards that their parent had when they died.

What debts are not forgiven upon death?

Medical debt and hospital bills don't simply go away after death. In most states, they take priority in the probate process, meaning they usually are paid first, by selling off assets if need be.

What voids a power of attorney?

For example, for power of attorney to be durable in California, it must contain specific language to that effect. Power of attorney documents must also either be notarized or signed by two witnesses. These errors and others can render the power of attorney void.

Can a nursing home override a power of attorney?

Can a Nursing Home Override a Power Of Attorney? Generally, a nursing home cannot override the decisions made by an agent with power of attorney. The purpose of a POA is to give a trusted individual legal authority to act on the principal's behalf when they can no longer make decisions.

Is power of attorney more powerful than spouse?

In California, a person can appoint anyone as their agent through a POA, including a spouse, friend, or attorney. However, issues can arise when the decisions made by the POA conflict with the wishes of the spouse.

Which sibling is most responsible?

In particular, firstborn children are usually characterized as responsible, Type A personalities who are often drawn to leadership-type roles in the family and in their lives. Being the oldest sibling may have its perks, but it also can feel like a burden at times.

How do I protect my parents assets from my siblings?

How Do I Protect My Parents' Assets From My Siblings?
  1. Estate Planning. Planning ahead is the best way to protect assets after death. ...
  2. Name an Independent Executor or Fiduciary. ...
  3. Prepare for Possible Disputes. ...
  4. Minimize Conflict.

Do I have to be responsible for my parents?

In the United States, each state has its laws requiring children to take care of their elderly parents. In 30 states, an adult is liable for their old parents' care after they are unable to care for themselves. However, the statute establishing this filial obligation has never been implemented in 11 of these states.