Acquisition of an inheritance is usually associated with a sudden cash flow, but often this is the beginning of a lot of trouble. If the deceased took a loan and did not manage to pay it back, the obligation to settle the debt passes to the heirs. How not to inherit debts from the borrower?
Banks and loan companies usually grant cash as part of loans and advances to persons who, at the time when the commitment was made, did not exceed 75 years, and the average life expectancy of Poles is within 77 years. The condition of the loan is only creditworthiness and potential repayment of debt, in practice no submission of health certificates.
It is important to know that the loan or credit agreement is not canceled after the debtor dies. The arrangements with the bank or loan company still remain valid, and the obligation to repay the debt goes to the heirs of the deceased. All existing conditions of the concluded contract are in force, the same monthly installments remain in force, the interest rate does not change.
When the bank notices the lack of further repayments, it begins pursuing claims and tries to recover its debts. In a situation where a husband dies who has taken out a cash loan and the wife does not pay the next debt installments, the bank terminates the contract and executes the joint property of the spouses. However, this option is only available when the deceased has entered into a commitment with the consent of his spouse.
To avoid problems connected with the necessity of paying the debts of the deceased, the right to inheritance may be rejected, which results in the lack of acquisition of both inheritance rights and obligations. This should be done within 6 months of obtaining information about the appointment to inheritance, in court or at a notary public.
For many people, it remains a problem to determine the testator’s estate of the debtor, the amount of debt, because the bank does not provide such information due to the secret. The bank provides data on the amount of debt incurred when the heir submits a document confirming the acquisition of the inheritance. It is worth remembering that if the inheritance is rejected, the next person in the catalog of people entitled to inheritance automatically takes over the debt.
In 2015, new rules on inheritance of debts entered into force. When the heir does not submit an application to accept or reject the inheritance, he inherits from the so-called an asset of the inventory, which means that the liability for the debts of the deceased falls only within the limits of the property received as part of the estate. It is important that when the inheritance is only a long heir there is no obligation to cover it.
Many loan companies offer loans and insurance. As part of this service, insurance companies secure a loan purchased by the customer with a policy in the event of the death of the insured. Therefore, before making a decision to commit, it’s a good idea to use the installment loan comparison engine. It will enable you to choose the best loan offer, in which the scope and sum insured will guarantee peace of your relatives and no problems with paying off debts incurred by us.