Repayment of debts to the dead – what should you know?

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Loan repayment after the borrower’s death. What if my spouse or heir does not pay the installments? Will the bank want to recover its debts?

How to protect yourself from paying debts after the deceased?

How to protect yourself from paying debts after the deceased?

The borrower’s death, apart from difficult emotional experience for his relatives, also has a huge financial impact on his heirs. Therefore, it should be remembered that the obligation to repay the debt is of a financial nature.

So the question arises: what about the loan after the borrower’s death? If the loan was unsecured, the spouse or heirs must pay their liabilities. Otherwise, the bank may take the property of the deceased person or execute the property of the heir.

Borrower’s death and credit insurance


The banks are increasingly using loan collateral, requiring the applicant for a life insurance policy. Most often, banks require such collateral from singles or the elderly so that the sum insured is a collateral for the outstanding value of the loan. Also the spouses decide to take out a security policy.

It is beneficial when we do not want our debts to pass on to the family. In the event of the borrower’s death, the insurance company pays money to the bank. Thanks to this solution, repayment of the loan after the death of your spouse will be possible.

By law

After the death of the sole borrower, his potential heirs take over the obligations and are obliged to repay the loan on the basis of general succession. The heir takes over both the material goods and the debts of the deceased.

There are two ways to inherit an inheritance:

  • Acceptance of the estate “directly” – the heir is responsible for the debts of the deceased with all his property.
  • Acceptance of the estate “with the benefit of inventory” – the heir is responsible for the debts of the deceased with his property, but only to the so-called inheritance values.

It happens that a person who has an obligation to repay the debts of the deceased person is not able to repay the loan on the terms that were included in the loan agreement. In this situation, you can apply for an annex to regulate the new repayment system. However, it should be remembered that it is the bank, which is guided by internal principles, that decides on the recognition of the annex. If there is any doubt or problem, contact the lender as soon as possible. You can also get help from a financial expert.

Cancellation of a loan after the borrower’s death – is it possible?

Cancellation of a loan after the borrower

In order not to pay debts arising from the mortgage after the deceased person should renounce the inheritance. If we are the only heirs, the bank will take over the property and thanks to that it will also cancel the loan.

Given the Civil Code (Journal of Laws of 1964 No. 16 item 93) there is a possibility of waiving the right to succession. To this end, appropriate documents and statements should be submitted, followed by all formalities with the court or notary. It is worth remembering that this option is available for a period of 6 months from the death of the borrower. This document should include the applicant’s data, the deceased’s, attached death certificate, justification of renouncing the inheritance and taking into account other heirs.

If you decide to accept the inheritance of the deceased or your spouse has left debts, make sure to what extent you are obliged to repay.