Although credit cards are called "credit" and do not require guarantees or mortgages, this does not mean that "debts are wiped out after death." In fact, after the cardholder dies, the bank’s source of recovery is the cardholder’s estate.

The questioner mentioned a key word - "huge arrears". Since it is a huge amount, the bank will not give up the recovery easily to avoid causing huge losses to the bank.

Generally speaking, for small arrears, the main ways to recover are through deductions from peer savings cards or other automatic deduction agreements that have been signed and effective. For example, some cardholders may have signed a monthly regular payment agreement with Alipay. Automatic repayment and other deduction agreements.

If the automatic deduction cannot repay the debt in full, whether the bank will continue to pursue the remaining repayment depends entirely on the relationship between the remaining repayment amount and the cost of repayment. When the amount owed cannot sufficiently cover the recovery costs such as attorney fees and travel expenses, the bank may choose to give up the recovery and treat the arrears as bad debts as a "loss".

However, if the amount owed is huge, the bank will generally not give up the recovery, and the most important source of recovery is the cardholder's estate.

First of all, if the cardholder leaves an estate after his death, the remaining debts during his lifetime should be paid first by the estate, and the remaining portion will be distributed according to the order of testamentary inheritance or legal inheritance. Assuming that the heirs inherit the inheritance before the credit card debt is paid, then the heirs have the obligation to compensate, and the compensation ratio can be based on the inheritance ratio. In the same way, if an heir gives up the inheritance, then the heir has no obligation to compensate.

Furthermore, according to the relevant provisions of the Marriage Law, if the cardholder has a spouse, the debts owed during the marriage are the same debt, unless the spouse can prove that the card debt is solely owned by the cardholder. If it is owed, it will be used for personal consumption expenses, otherwise it will be treated as a joint debt, and the spouse will have the obligation to repay the joint debt, and the bank can recover from the spouse.

Third, if the cardholder has neither an inheritance nor a spouse, then the card debt owed will be classified as bad debt, and neither the cardholder’s parents nor children have the obligation to repay.

Fourth, what if the inheritance left by the cardholder is not enough to cover the card debt? For example, the value of the inheritance left behind is 200,000, but the credit card debt is 300,000. In this case, it stands to reason that it is best for the heir to voluntarily give up the inheritance, because even if he inherits the inheritance, it will not be enough to repay the debt after the inheritance is realized. In the end, the bank will still realize the entire inheritance through litigation or negotiation to repay the debt. In this case, the bank will resort to law in the form of an economic dispute. After winning the lawsuit, the inheritance will be liquidated to repay the debt, and the remaining portion will be recovered from the spouse. If there is no spouse, the remaining portion will not be recovered and will be classified as a "loss".

This is a good question! This is an issue that many people are particularly concerned about right now! Because many people owe a lot of debt to banks and are worried that their families will be involved!

First of all, we need to understand what "credit card debt" belongs to? A credit card is a card with a usage limit that is issued to the applicant by the card issuer based on the applicant's "personal" economic status, credit status, etc. To put it simply, it is a "recyclable credit loan provided by the bank to the applicant"! Therefore, "credit card debt" is a personal debt and is the individual's responsibility to repay!

Next, let’s talk about how to deal with a “huge” credit card debt after the cardholder dies.

There are only two statuses of deceased cardholders, one is unmarried and the other is married.

Let’s talk about the “unmarried” first. The cardholder's credit card debt is a liability in his or her personal name. If the cardholder has an inheritance sufficient to cover the debt, the debt should be paid off first, and then the remaining inheritance will be inherited by the heirs. If the inheritance is not enough to cover the debt, the shortfall will be dealt with as bad debt by the bank, and no recourse can be made to the family, because the family is not the "guarantor" of the debt!

Let’s talk about “married”.

Although the credit card is issued to an individual and does not require his or her spouse to be a "guarantor", this is a debt within the marriage and should be borne by both spouses. The bank can pursue the debt from the spouse! However, there is one exception. "Common debt of husband and wife during marriage" specifically refers to "used for joint living needs of husband and wife". If the amount of debt owed is huge, or the spouse can provide evidence to prove that the debt is not If it is used for the husband and wife’s living needs together, the debt will be regarded as the cardholder’s personal debt, and the spouse does not need to bear the responsibility for repayment, and the bank has no right to pursue it from the spouse! It can only be claimed within its share of the inheritance!

There is another point that I would like to explain in particular: if the cardholder purchased insurance during his lifetime, the "death compensation" paid by the insurance company cannot be claimed by the bank! The prerequisite is that "in the insurance contract, the beneficiary on death cannot be filled in "statutory", and the specific person must be specified!"

For example, I am married and have a child, but I have an overdraft due to the needs of my self-employed company. 800,000 in credit card, and then an accident happened. I bought a 1 million insurance policy before my death, and the insurance contract stipulated that the "death beneficiary" is my spouse. In addition, my spouse and I bought a house after we got married, which is currently worth 1.2 million. What happens next?

The bank will pursue the debt from my spouse, and the insurance company will pay a "death benefit" of 1 million to my spouse (of course, if the insurance company does not refuse the compensation). So how much money will the bank get back?

What if I owe a huge debt of 800,000 for family expenses such as attending private schools for my children, attending cram schools, and medical treatment for my family members? (Others remain unchanged)

Everyone is welcome to answer enthusiastically in the comment area!

Credit cards require consumption first and repayment later. If you advance money from the bank in advance for consumption, you need to repay it. However, what should I do if a credit card holder dies and owes money? Today I will answer the question "What should I do if a credit card holder dies and owes money?"

As far as I know, when a credit card holder dies, if the cardholder has an inheritance, the bank can recover it from his heirs; if there is no inheritance, the debt dies naturally and the bank cannot recover it from his heirs.

A situation where a cardholder has inheritance:

Credit card debt is also part of the personal estate. Generally, the debt is paid off first, and then the remaining estate is distributed. The credit card debt is a debt of the cardholder, so the remaining balance must be paid back before it can be distributed as an inheritance.

Second situation where the cardholder has no inheritance:

If the cardholder’s card consumption occurs during marriage, according to the Supreme People’s Court’s decision on the application of the “Marriage Law of the People’s Republic of China” Explanation of several issues (2): "Article 24 stipulates that if a creditor pays debts in the individual name of one spouse during the marriage relationship, they shall be treated as joint debts of husband and wife. Therefore, if the cardholder has no other If the credit card debt is personal property, the other spouse should still continue to repay it.

If the cardholder has neither inheritance nor a spouse, then the credit card debt as a personal debt can only be treated as bad debt and should not be charged. Their parents, brothers, sisters and other relatives shall bear the responsibility.

Supplement:

Article 26 of my country's "Inheritance Law" stipulates that the income earned by the husband and wife during the marriage relationship shall be borne by all. Unless otherwise agreed, if the estate is divided, half of the property owned by the spouse shall be divided first among the spouses, and the remainder shall be the inheritance of the deceased. When one spouse dies, the surviving spouse shall enjoy the right of division. *The right to the same property and the right to inherit the estate of the deceased.

In addition, Article 3 of Chapter 1 of the "Inheritance Law": inheritance is the legal personal property left by a citizen when he dies, including: the citizen's income; Houses, savings and daily necessities; citizens’ trees, livestock and poultry; citizens’ cultural relics, books and materials; citizens’ means of production permitted by law; citizens’ property rights in copyrights and patents; and other legal property of citizens.