In the midst of a recession, delays and failure pay debts due to lack of resources are understandable. Therefore, it is not surprising that delinquency on credit and consumer cards has increased to 6.02% and 3.90% (the highest rates recorded since July 2021), respectively, according to data from the Superintendency of Banking and Insurance (SBS).
This decrease in payment can give rise to the possibility that people who die leave debts uncovered. Given this, the question arises about what is the fate of our parents’ debts if they die.
Can I inherit my parents’ debts?
If your father or mother dies and has outstanding debts with the bank, the lien insurance exempts the heirs from the responsibility of paying off the loan.
In accordance with the Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS), this insurance protects against debts acquired with a banking entity in the event of death or total and permanent disability.
However, if the debt does not have credit relief insurance, the heirs, who acquire the assets and liabilities of the deceased, must respond for it, but are not obliged to use their own resources to pay it.
In an interview for La República, Lorena Fernández, lawyer specializing in Family rightindicated: “When a person dies, the debts are inherited, not in their entirety, but depend on the assets left by the deceased, according to article 871 of the Civil Code.”
In other words, if the total inheritance (called “hereditary estate” by the specialist) exceeds the amount of the debt, it will be possible to use those funds to pay it off.
For example, if the inheritance when distributed was assigned to son A 35% and to B 30%, the payment of the debts will be made in proportion to the amount that each one receives.
Can I avoid being inherited a debt?
In this scenario, it is almost inevitable to incur debt. The lawyer also emphasized that inheriting it cannot be avoided due to a provision in the Civil Code that establishes the inheritance of all debts to the heirs, unless it is a mortgage.
However, there are exceptional circumstances in which it is possible to avoid inheriting a debt and this occurs when it has expired. In other words, if there are no pending lawsuits and at least 10 years have passed, you can avoid assuming him as an heir.
Source: Larepublica
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