{"id":10233,"date":"2021-01-29T14:49:32","date_gmt":"2021-01-29T20:49:32","guid":{"rendered":"http:\/\/boinita.com\/what-debts-are-you-responsible-for-after-the-death-of-a-family-member\/"},"modified":"2023-03-21T14:06:22","modified_gmt":"2023-03-21T20:06:22","slug":"what-debts-are-you-responsible-for-after-the-death-of-a-family-member","status":"publish","type":"post","link":"https:\/\/boinita.com\/en\/what-debts-are-you-responsible-for-after-the-death-of-a-family-member\/","title":{"rendered":"What debts are you responsible for after the death of a family member?"},"content":{"rendered":"\n

In loans and debts, what is cancelled and what is continued after someone dies?<\/h2>\n\n

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.<\/strong><\/p>\n\n

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.<\/p>\n\n

“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.”<\/p><\/blockquote><\/figure>\n\n

<\/p>\n\n

Student Loans<\/h3>\n\n

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

<\/p>\n\n

Credit Card Debts<\/h3>\n
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\"Credit<\/figure>\n<\/div>\n

Credit card debt is actually the most common type of debt that people in Mexico have at the time of their death<\/strong>.<\/p>\n\n

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<\/strong>.<\/p>\n\n

<\/p>\n\n

Automobile Loans<\/h3>\n\n

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.<\/p>\n\n

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.<\/p>\n\n

<\/p>\n\n

Mortgages<\/h3>\n\n

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

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

<\/p>\n\n

When should I not pay a debt? <\/h2>\n\n

A relative shall not be required to pay the debt of a deceased person when: <\/p>\n\n