What debts are you responsible for after the death of a family member?

In loans and debts, what is cancelled and what is continued after someone dies?

Not everyone can pay their debts when they are alive; in fact, most people in Mexico will not. Approximately 73% of consumers will have some type of loan or debt when they die.

The last thing anyone wants to think about after losing a loved one is debt. That is why it is important to know what you can be responsible for and which ones you should not worry about.

“As a general rule no person has a legal obligation to settle the debts of the deceased person, unless he or she is the spouse of the deceased person or is established as executor and was appointed responsible for settling the debt.”

Student Loans

In a private school it is very likely that the tuition payment will include death insurance. This tuition insurance covers you for all tuition fees from the date of death and thereafter until the end of your professional career.

Credit Card Debts

Credit card debts in people who die

Credit card debt is actually the most common type of debt that people in Mexico have at the time of their death.

Most of these cards have life insurance that cancels the debt upon the death of the debtor. However, this would not apply to credit cards that are more than three months in arrears, as well as if they are used days after death.

Automobile Loans

When applying for a loan, life insurance and automobile insurance are considered in the contract. This protects the person that in the event of death, the loan will be liquidated.

If the principal beneficiary dies, the sum insured will pay off the auto finance debt and the next of kin will receive the remainder if there is a balance.


Most banks require a life insurance policy when applying for a loan to buy a home. Therefore, in the event of the death of a mortgage holder, the insurance is activated and the debt is eliminated.

In the case of a joint loan(FOVISSSTE and INFONAVIT), the insurance will only cover the proportional part of the total debt of the person who dies. So the insurance will cover that percentage and the rest of the debt will remain in force and must be covered by the spouse.

When should I not pay a debt?

A relative shall not be required to pay the debt of a deceased person when:

  • The deceased has life insurance covering the outstanding balance of the debt.
  • In case of heirs, when refusing to receive the rights and obligations. There is the possibility of using part of the inherited assets to cover the debt.

Remember that Boinita is a Simple Cremation Service without a Funeral Service with the guarantee of the best price and service.

At Boinita we can take care of the cremation of your loved one. Then, once we have returned the ashes to you, you can arrange a simple memorial service that is perfect for you and your family.

For more information about our service go to http://boinita.com

Boinita offers Single Cremation services without a Funeral Service, with a fixed price and 24-7 customer service. Boinita is located in the metropolitan areas of Aguascalientes, Cancun, Hermosillo, Merida and San Luis Potosi.

In Pet Cremation Services we are located in the cities of Aguascalientes, Cancun, Chihuahua, Ciudad Juarez, Leon, Merida, Puebla, San Luis Potosi, Tijuana and Toluca.