Legal Question in Consumer Law in Virginia
Car Loans
If two people are on a car loan together and one of them dies is that car payed for?
1 Answer from Attorneys
Re: Car Loans
No. If 2 people are "on" any loan, it means the creditor can collect the amount due from EITHER of them. So if only one is left, the creditor can colect from the one who is left.
The only way it would be paid off is if there were an insurance policy to pay it off or some inheritance to pay for it.
Whether or not an executor SHOULD pay it off from an inheritance situation would be a very hard question to answer without a lot of details.
However, to the extent that the debt is at least half that of the deceased, perhaps the exeuctor (personal representative) should use some of the probate estate to pay off the deceased person's debt. (However, the remaaining living person will be the one driving the car from now on...)
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