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BizAttorney
BizAttorney, Attorney
Category: Legal
Satisfied Customers: 2273
Experience:  Over 12 years of business and legal experience.
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My father recently passed away. He left his IRA to me and my

Resolved Question:

My father recently passed away. He left his IRA to me and my three siblings. He also left some credit card debt behind. Can the credit card company come after our IRA distributions? He was a resident of NJ when he passed away.

The only other asset he had was a house which he shared with my brother and sister in law. All three of them are on the deed. Can the credit card company go after the house?

Finally. He and my mother have been divorced for several years. However, he forgot to take her name off of his death benefit and she will be receiving whatever the payout is. Can the credit card company go after that?

Thank you, Tom
Submitted: 4 years ago.
Category: Legal
Expert:  BizAttorney replied 4 years ago.

BizAttorney :

Good evening! I can help you out with your legal question tonight. I'm sorry to hear about your father. Did the credit card companies obtain a judgment against your father?

BizAttorney :

The IRA passes outside of probate so credit cards would not be able to come and collect against the IRA's.

Customer:

No judgements

BizAttorney :

Also, whether they can get to the house depends on if your dad was listed on it. If he was, then the creditors could lien the property if there is equity above the homestead exemption amount (presuming he filed a homestead on the property).

Customer:

he was on the deed with my brother and sister in law

BizAttorney :

Ok, then the creditor could only lien up to 33% of the property, meaning that the homestead exemption should cover it so that the property is exempt from creditors.

Customer:

ok. how about his death benefit from work? it was left to my mother. I dont know how much it is. can they come after the payment to her?

BizAttorney :

It will depend on their credit card verbiage, so I can't really say. They can only come after his estate though and not her personally.

Customer:

is the death benefit considered part of the estate?

BizAttorney :

It depends, was it a pension or annuity?

Customer:

im not sure. i think it was there to cover funeral expenses

BizAttorney :

It depends on how it gets into the estate, but if the estate is exhausted then the creditors are out of luck (depending on the contract verbiage). Some creditors release the debt upon death, so it really just depends.

Customer:

ok. thanks for your help

BizAttorney :

You are welcome! Have a good night and please accept so that I can continue to help others.

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