Who pays the loan in the event of the borrower's death: the law, the rules of repayment and recommendations

The death of a loved one is always a tragedy. But sometimes it causes still unpleasant questions, which concern finances. And no, it's not a legacy, it's about loans. In our time, many use the services of banks - make out mortgages, loans. But who pays the loan in case of death of the borrower? Well, there is an answer to this question.

Who is responsible?

The topic is really complicated. The answer to the question of who pays the loan in the event of the borrower's death depends on the mass of the nuances. And they need to be listed.

So, the most common case - the debt goes by inheritance. Suppose an elderly man died, with his son left, and he bequeathed his savings and property to him. But along with this, the person gets the debt of his parent. What to do?

First - wait until the rights of the inheritance come into legal force. Usually this happens 6 months after death. During this time the heirs share the property and debts of the deceased. If they conscientiously agree to pay the loan, then the credit agreement is being reissued. Although most often the bank is not going to wait for the expiration of 6 months and begins to demand payments immediately. But! In either case, the heir pays the relative's debts according to the amount of property that he received. If, say, he got 300 000 rubles, and the deceased should bank a million, he is not obliged to give his own money for repayment.

With pledge

This is not all that you need to know about who is paying the loan in the event of a borrower's death. What if the loan was issued by the deceased on the security of the acquired property? Apartments, for example, or a car? In this case, the heir gets the subject of the pledge and the right to dispose of it at will. And there are two options. And that's what they are:

• Extinguish the remaining debt. To use the purchased car or live in an apartment that has been taken out by a relative in a mortgage.
• Sell the subject of the pledge. So it will be possible to kill two birds with one stone - to close a debt and to take to itself "profit".

By the way, there are situations when it turns out that the property and savings of the deceased are designed for someone who is not yet of age. Who pays the loan in the event of the borrower's death in this case? Parents or guardians of a minor. But at the same time the bank takes into account every legal action. Since it is important that nothing goes against the rights of minors.

In the case of an insured loan

This is a special situation. If a loan issued by a person who left this world was insured, it would be easier to repay it than in other cases. Why? But because this will be handled by the company that insured the loan. However, even here there are pitfalls.

Nobody wants to part with their means, especially insurance companies, and there is a huge probability of failure. The debtor's death simply can not be recognized as an insurance situation! This happens when a person has died:

• In war or in prison / colony of strict regime.
• During an extreme sport (diving or parachute jumping).
• Due to infection with radiation or venereal disease.

If the case does not correspond to anything of the above, the insurance, not wishing to pay the debt, can refer to the fact that a person left this light because of a chronic illness. If, say, he died because of alcohol poisoning, then the agents are quite capable of declaring that it is because of his unhealthy liver. Did he smoke a lot? Then everyone will write off on congenital heart diseases. But this is usually done by unscrupulous companies. Those firms that occupy the first lines in reliability ratings are conscientious.

The Surety

And what about how to pay a loan in case of death, if it was not insured? This is the situation described at the very beginning. Debt is inherited. But a special case is that when a loan was made, a person turned to a guarantor for help. This is - a volunteer, usually included in the circle of close people, which guarantees the solvency of the person being loaned. Not everyone agrees to speak in his role, because if something happens to a person, the debt will fall on the shoulders of the guarantor. He will need to not only give the bank debts, but also all the due interest and costs spent by the lender to bring the guarantor to justice.

Compensation for the guarantor

And here there are nuances. For example, a loan was issued by a person who has quite adult working children - heirs. But his sponsor was a close friend. What then? In this case, the debt must be paid by the heirs. But if they are unscrupulous, they can simply ignore it. And then "pay the bills" will need a guarantor. But! He has the full right to demand from unscrupulous heirs compensation of material damage in full, referring to the courts. True, this is only after the loan is paid.

What do you need to remember?

There are a lot of nuances concerning the question of who will pay the loan in case of death of the borrower. Here is one of them: the bank, despite the death of its client, continues to charge interest. There are grounds for this. The heir, according to the rules, begins to be responsible for the debts of the departed from that day, as he left this world. But still certain charges, penalties and penalties can be challenged and canceled. However, you need to go to court for this. But usually, if the borrower has paid off debts regularly and showed itself in good faith, the bank takes this into account as a good reason and late payments due to death are canceled.

Actions

However, it's still not worth it. Who will pay the loan in the event of the borrower's death, if not the heir? Nobody, therefore it is necessary to gather thoughts and follow this instruction:

• First get a certificate of death.
• Then - contact the bank in order to report the incident. It is best to come to the department, and immediately with a death certificate.
• Then you need to go to the notary. There, a statement of acceptance of the inheritance is compiled and certified.
• The next stage is a six-month wait. As already mentioned, after 6 months, a person will enter the rights of the heir.
• Then you need to make a tax return to pay a certain percentage of the inheritance.
• After that, the person again must go to the bank to re-arrange the loan agreement and start paying the debts.

As can be seen, nothing is complicated, therefore it is desirable to tackle these issues as soon as possible. The loan and the death of the borrower are great trouble, but the sooner the person proceeds to the above actions, the better.

How to avoid liability?

The above recommendations can help people who are faced with the problem under discussion. But is it necessary to repay the loan in case of death of the borrower? "Surely you can somehow avoid this?" - Many people ask this question. Well, really you can. For this, the heir must renounce all the property that was bequeathed to him. Within six months.

Before deciding on this step, it is necessary to think everything over, as the refusal of the bequeathed property is not subject to change or return. A minor, by the way, can renounce the inheritance only if he receives the official permission of the guardianship authorities.

And what if the guarantor of the borrower who left this light also died? This happens, however, very rarely. In such situations, the debt is not transferred to other heirs and his close people. What happens to the loan in case of death of the borrower and the guarantor? This should already worry the bank's management - most likely, they will look for successors.

Information for co-borrowers

Now you can apply for loans with someone. With a relative, of course, or with the official "second half." Then two people who decided to apply to the bank for a loan, become co-borrowers. But if it happened that one of them died, who will pay?

To pay the loan in the event of the death of the borrower will still have to. There are three options. And that's what they are:

• The co-borrower goes to the bank with a death certificate and renews the loan agreement. As a result, all debts are borne on his shoulders.
• A person finds someone who can help him in payments. That is, to become him a new co-borrower. However, he and his income must meet the requirements of the bank.
• The co-borrower decides to give up half of the debt belonging to the deceased, and continues to pay only "his" part.

The latter case is special. So, for example, if the co-borrowers have issued a special loan for the purchase of an apartment, the bank will sell the housing. With the proceeds, he will pay off their total remaining debt. But the part that the co-borrower, who was alive earlier, paid to him, will be given to him.

About violations

Some people who have inherited not only an inheritance, but also debts on a loan, decide to "outwit" the bank. They do not give up their property, but they do not do any of the above to re-register the loan agreement. In this case, the bank applies to the executive service. And then the heir, who has regretted the money to pay off debts, will need to be answerable before the court and go bankrupt not only to repay the loan and interest, but also to reimburse the financial expenses of the bank. Otherwise, there is a risk of losing property. The bank can simply sell it to recover its losses.

However, if the lender did not claim himself within six months after the death of their client, the loan is canceled. This, too, must be remembered.