You Cannot Be Held Responsible for These Debts
Americans have a lot of debt— more than six figures on average, which is a staggering number. It’s difficult to live life without going into debt: Buying a home without a mortgage is a challenge for most people, and many people rely on credit cards to survive from time to time. And debt causes us a lot of stress and anxiety , so our first reaction when we are contacted about new debt is often panic .
But before you decide you’re on the hook for debt , it’s usually worth taking a breath and figuring out whether you’re actually responsible. Just because a debt collector or company contacted you about a debt doesn’t mean you’re legally responsible for it—but if they can get you to pay it anyway, that’s great for them. If you’re being asked to collect a debt that you either didn’t personally take on or think you have, here’s what you need to know.
These are not your debts
First, generally speaking, you probably aren’t responsible for someone else’s debts, even if it seems reasonable to do so:
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Deceased relatives. If the debt belonged to a deceased parent or other relative, you likely are not responsible for it — unless you co-signed a loan with them, opened a joint account, or were the executor of their estate and paid yourself the debt. inheritance without repayment of debt. Remaining debts must be paid from the estate , not from the relative’s or child’s pocket – in fact, it is illegal to try to force relatives to pay the debt.
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Spouses. How you pay off debts if your spouse dies or divorces depends on whether you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) or a community property state. (everywhere else). In community property states, the marriage (i.e., the community) shares most of the debts incurred during the marriage, even if only one spouse was involved. However, in common law states, you are usually only responsible for your own debts, even while married, so only joint debts (such as a credit card with both of your names on them) or debts that benefit the marriage are shared.
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Non-relatives. Again, unless you signed something or entered into some other contractual agreement to share the debt with someone, you cannot be held liable for someone else’s debts.
How to understand that you need to pay off a debt
When it comes to debts that someone claims you owe personally but you’re not sure (whether you think you’ve already paid them off or because you can’t be sure you actually incurred the debt), You can take a few steps to figure out if you actually have to pay it:
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Check the date. In most states, the statute of limitations for debt is about six years. At this point, you technically still owe the debt, but you have no legal obligation to pay it (however, it may still show up on your credit reports).
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Request information. If you are unsure whether a debt actually belongs to you, contact the collection agency or company and ask for additional information , including the name of the creditor (and the name of the original creditor if the debt was sold), the amount owed, and the date the debt was incurred.
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Dispute. If you do not believe the debt actually belongs to you, submit your dispute to the company or collection agency in writing within 30 days of receiving this information (called a “verification notice”). Provide proof of payment if you have already paid off the debt, and find out what collection agencies can and cannot do to collect the debt.
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Research. If you’re having trouble getting information from a collection agency or original creditor, you can look into your own debt history by reviewing your credit reports , checking old records (such as bank and credit card statements—you can contact your bank and issuing company to request information). old statements) and old correspondence, such as email. If you cannot confirm the debt on your part, file a dispute.