[WSBAPT] Non-Community Credit Card Debt of Deceased Spouse - Cards in Both Names

[Natalie Kuehler]

Hello all,

I have a client whose wife passed away after a long marriage. When she died, husband discovered that wife had run up significant debt on three credit cards, likely to pay for her gambling habit. All of the credit card companies issued two cards, one in the name of each spouse. The husband can’t recall opening the accounts, but they go as far back as the 80s. He has not used the cards in recent memory. The couple also own real property that has a significant mortgage.

The couple had a community property agreement in place so there is generally no need to open probate.

I have two questions:


  1.  What is the best way of dealing with the non-community debt accrued by wife on the credit cards, given that the cards were also issued in husband’s name? Do we simply tell the credit card companies that we are cancelling the accounts and that the debt is non-community debt of the deceased spouse, and then wait for two years? Or is this more complicated because husband’s name is on the accounts/cards, too? The interest being charged is 25%, so I want to make they can’t look to husband as co-debtor.
  2.  Even if we can eliminate the credit card debt, the existing mortgage is too much for husband to carry on his own. Would you recommend calling the lender to try to negotiate new loan terms, or is filing bankruptcy first a better option? If so, please send me any referrals!

Thank you!

Natalie

Natalie N. Kuehler
KUEHLER & GRIM PLLC
PO Box 3059 – 1112 State Route 20
Winthrop, WA 98862
o: (509) 996-2832 x1 – c (509) 557-5769
www.kuehlergrim.com<http://www.kuehlergrim.com>

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