Legal Question in Credit and Debt Law in Alabama

Re: Spouse Obligation to Personal Debt

Well, like so many legal issues, the answer depends on some other factors. I'll give you the best run-down I can without knowing your particular situation. First, if the account is in the deceased's name only, the surviving spouse is not obligated on that account and does not have to satisfy the debt. However, if the spouse was a co-signer on the account, the entire obligation is a debt of both persons equally, so the surviving spouse will have to pay the debt. In some cases, even if the surviving spouse is not obligated, he or she may want to keep paying-for instance, in the case of a car loan. In the situation of secured debt, such as a vehicle loan, the surviving spouse will want to contact the lender and see if the loan can be assumed by that person. Many lenders will not allow this but will work with the spouse to pay off the old loan with a refinance. You should also know that death of a/the borrower is an instance of default on many loan notes. That means that the surviving spouse should probably make efforts to contact any lender for a debt on which he/she might be liable after the spouse has died to make sure there are no problems.