Credit Card Debt and the death of a family Member

[Sevensixzero]

A younger member of my Thai family suddenly passed away and the family is trying to figure out what to do with the credit card debt (one card with Citibank and one with Bangkok Bank). Any knowledge on the usual procedure here with that? I am telling them that they can at the very least negotiate with the credit card company to pay less. But what if they just ignore them?

He had a bit of money in the bank (about 1million in a long term account) and just used the credit cards for plane tickets etc. Unmarried but has a kid, would much rather make the CC company eat the loss than take money from his kid.

Any experience to share would be appreciated.

[JHolmesJr]

The CC company is welcome to visit him in the Elysian Fields to reclaim their debt…no one else's business.

[oxo1947]

He is dead ---the bank doesn't know--but you still have the credit cards..............its a no brainer - 760-

Everyone in the family gets an I-phone & Dad gets one of those super TVs with the contour screen.............................

[richard_smith237]

I understood that any debt is subtracted from the 'estate' (his remaining money) before the estate can be passed on.

If the estate is insufficient to pay off the debt, it's written off once once the estate has paid as much off as possible.

(I may be mistaken).

This may also be a concern for those with inlaws who have amassed debt.

Edited May 10, 2016 by richard_smith237

[andrew55]

Do you think he would have wanted his debts paid?

[andrew55]

He is dead ---the bank doesn't know--but you still have the credit cards..............its a no brainer - 760-

Everyone in the family gets an I-phone & Dad gets one of those super TVs with the contour screen.............................

......................and some one-way flights............

[dotpoom]

" Unmarried but has a kid, would much rather make the CC company eat the loss than take money from his kid."

Strange attitude to have by anybody (I'm aware the debtor is deceased).....If you borrow money, is paying it back not the right thing to do (no matter who you borrow it from?).

[realenglish1]

The family is NOT responsible for the debt . His estate is And if there is nothing in the estate to cover the debt then the debt is eaten by the bank

Simple

[Caca4u]

They should withdraw the money out of the account. Soon the account will be frozen

[snowgard]

They should withdraw the money out of the account. Soon the account will be frozen

And done a crime. Because death people can't take out money!!! Don't forget the nice CCTV!!!

[fletchsmile]

Sorry to hear of your family member passing away.

Assuming there was no supplementary card holder and no-one has guaranteed the card for him, then it's a liability of his estate.

You mentioned that he had THB 1mn with the bank. That will no doubt will exceed the limit on his credit card. The bank will be entitled to deduct any liabilities the guy has with them from any assets/deposits he has with them. So they will naturally net them off.

To gain access to his assets the family will need to go thru probate. The bank will want to see a probate letter from whoever is executing the affairs of his estate, confirming that they have authority to deal on the deceased's estate behalf. So in practice there'll be no legal way of claiming the THB 1mn before the credit card liability as they'll have to inform the bank he's deceased in order for anyone else to get near the money, and they're with the same bank

The money only legally belongs to the family/ his heirs after the debts are settled. So describing it as "taking money off the kid" isn't accurate. The money belongs to his estate not the family. It can only legally be settled and passed on after debts are paid.

The bank is under no obligation to negotiate the amount down.

You can, however, ask and appeal to the bank's better nature, particularly if there is a goodwill between the parties involved. I can confirm that's possible from first hand experience.

Edited May 10, 2016 by fletchsmile

[Scouse Twoccer]

He is dead ---the bank doesn't know--but you still have the credit cards..............its a no brainer - 760-

Everyone in the family gets an I-phone & Dad gets one of those super TVs with the contour screen.............................

Fraud is always a no brainer...for a no brainer.

[Suradit69]

The CC company is welcome to visit him in the Elysian Fields to reclaim their debt…no one else's business.

The family may not have any responsibility, but the million baht in the bank & any other assets he may have had, especially if the bank account was in his name only, would certainly be subject to claims against his debt.

[NoshowJones]

" Unmarried but has a kid, would much rather make the CC company eat the loss than take money from his kid."

Strange attitude to have by anybody (I'm aware the debtor is deceased).....If you borrow money, is paying it back not the right thing to do (no matter who you borrow it from?).

That all depends on whether who you owed the money to played fair with you.

[12DrinkMore]

Probably yet another troll.

There is a legal and a moral responsibility to pay the debts from the assets.

I personally object to having the liabilities of someone else socialised onto me in terms of higher interest and annual fees.

[thailand49]

Is the C.C. connect to the same bank as the long term savings?

What do you mean when you say Long Term Savings? Is it a C.D. or even a IRA?

Who else name is on Saving Account, is it a Joint?

How old is the Son?

Obvious the guy did not have a Will or Trust? Not bashing but typical for anyone anywhere, in general people do not want to deal with stuff like this? Even in Thailand the courts will eat up the money so if family can get their hands on the money I would do so and quickly.

If the saving isn't tie to the same bank. I make the C.C. bank eat it. I'm sure the ATM fee they are charging for foreign cards will cover the debt easily? If it is tie to the same bank and it is joint take it all out and create another account at another bank for the son and do not tell him about it until he is 21 years of age or as necessary?

Edited May 11, 2016 by thailand49

[GOLDBUGGY]

Well you can be sure that this guy wasn't the very first person to die owing money to a Credit Card Company and he won't be the last one either. So it becomes a question of doing the right thing and not having to look over your shoulder the rest of your life, and pay them off, or trying to defraud a company who are experts in dealing with situations and people like this.

Personally I would rather pay them off and move on. You can be sure that somewhere down the line someone will have to deal with this one way of another. Providing false information for person gain is fraud and can lead to a jail sentence. When filling out a credit application there is usually a Next of Kin Clause, so they will know already who that is.

[Sevensixzero]

I appreciate the comments, equally both the helpful/insightful and the asinine/callous. Thaivisa never fails to deliver

For the record they negotiated a single payoff amount that ended up being a bit less than half the total outstanding balance.

[IMA_FARANG]

i know i am an old 'Dinosaur" but i don't have and will not even get a "Credit Card"

I do have and regularly use a "Debit Card". but that is a different thing, isn't it ?

I regard a "Credit Card" as the equivalent of the first thin blade of the Capitalist devil ready to be slpped into your honest heart.

[hawker9000]

I understood that any debt is subtracted from the 'estate' (his remaining money) before the estate can be passed on.

If the estate is insufficient to pay off the debt, it's written off once once the estate has paid as much off as possible.

(I may be mistaken).

This may also be a concern for those with inlaws who have amassed debt.

Do you think he would have wanted his debts paid?

That's not the question, assuming that what Richard-smith is saying is true in Thailand, as it is in most western countries. Ethics aside, if it is true as he says, and the executor (or whatever it's called in Thailand) just goes ahead and distributes the estate to inheritors, it just leaves the door open to expensive litigation, including against the executor personally, later on. ...All depending on whether or not the amounts we're talking about are significant of course.

Further, in Thailand creditors may or may not (I don't know) have the right to come after the surviving spouse and children for payment. In the west that's generally not true and they can't (though they're famous for trying...), but Thailand may be different.

If the amounts in question are significant, you really should talk to - and I really hate to say it, but yes - a lawyer.