Who repays the loan in the event of the borrower's death?

Today you rarely meet a person who has never taken out a bank loan. Therefore, recently there have been more and more cases when a person dies and leaves as an inheritance not only the property acquired during his lifetime, but also debts to creditors.

The question becomes relevant: who should repay the loan after the death of the borrower and is it necessary to do this at all? Oddly enough, the well-known truth “no person, no debt” does not work in this case.

The bank will make every effort, defend its interests and try to return the loan once issued.

In this case, there are several possible solutions to the problem:

1. The loan debt is transferred along with the inheritance to the persons who inherited the property of the deceased. They, at their discretion, can accept the inheritance and automatically undertake the obligation to pay off the debts of the testator or refuse the inheritance and get rid of unnecessary problems.
2. The balance of the loan debt is paid by the insurance company if the borrower insured his health and life when applying for the loan. But in this case it is necessary to prove that the death is an insured event.
3. Responsibility for fulfilling obligations to the creditor falls on the guarantor.
4. The responsibility for repaying the debt passes to the co-borrowers.

Important! Regardless of the circumstances, before you begin to solve this problem, you must carefully study the loan agreement. The document must clearly indicate who is responsible for repaying the loan in the event of the borrower's death. If the agreement does not say anything in this regard, then the issue is resolved in accordance with the norms and requirements of the legislation of the Russian Federation.

If the borrower was insured against death

Life insurance is in most cases a mandatory procedure when taking out large loans. This is how the bank insures itself in case of non-repayment of loan funds due to the death of the borrower. Clients are reluctant to agree to buy an insurance policy and renew it every year until they make their final loan payment.

Russian legislation prohibits banking institutions from insisting and requiring borrowers to take out life insurance, so banks have their own tricks.

They may reject a loan application without explanation or offer a loan at a lower interest rate subject to insurance.

As a result, clients have no choice but to agree to the lender's terms and conclude an insurance contract with one of the insurance companies.

In the event of the death of the borrower, if there is an insurance policy, the balance of the debt must be paid to the creditor bank by the insurance company. But there are certain nuances here.

To receive an insurance payment, you must provide documentary evidence that the death of the insured person is an insured event.

The insurance company may refuse to pay the insured amount if death occurs:

• in places of detention or in a war zone;
• as a result of extreme sports;
• as a result of sexually transmitted diseases;
• as a result of chronic diseases that the deceased kept silent about at the time of concluding the insurance contract;
• as a result of alcohol or drug intoxication;
• after exposure to radiation, etc.

This list may differ from one insurance company to another, so it is worth familiarizing yourself with it in advance and eliminating the possibility that the death of the insured person did not occur for one of the above reasons. After making sure that the death of the borrower is an insured event, it is necessary to report this fact to the insurance company, providing a death certificate and an insurance policy.

Often, insurance companies refuse to pay insurance coverage, citing the fact that the deceased deliberately hid from them some chronic disease or addiction to alcohol/drugs that caused death.

In some cases, such a way out is not advisable at all, since the costs of legal proceedings will exceed the amount of the debt.

There are situations when the insurance company pays the insurance amount, but it is not enough to cover the debt. Then the difference between the balance of the debt and the amount of insurance coverage must be paid by one of the following persons:

• heirs;
• co-borrowers;
• guarantors.

If there is no one, then the bank simply writes off the debt and closes the loan agreement.

To avoid problems with the insurance company in the future, you need to choose an insurer that has successfully passed accreditation with the creditor bank and has confirmed its reliability in practice.

Typically, when applying for loans, bank employees on site offer clients to use the services of companies with which the institution cooperates. The borrower should agree to the proposal.

This is safer for both him and his creditor.

Right now you can apply for a loan, credit or card to several banks for free. Find out the conditions in advance and calculate the overpayment using a calculator. Want to try?

If the borrower did not have life and health insurance

It’s good if there is insurance and all the debts of the deceased will be paid by the insurance company. But many people are concerned about the question of who pays off the loan in the event of the sudden death of the borrower, if there is no life and health insurance policy.

According to the legislation of the Russian Federation in part of Article 1175 of the Civil Code, all acquired property, together with existing debts, passes to the heirs.

Moreover, it does not matter whether the blood relatives accepted the inheritance or whether it passed according to the will to strangers.

Whoever accepted the inheritance pays the debt. If the inherited property is distributed among several successors, then the debt of the testator is divided between them in direct proportion to their share in the inheritance.

Important! Despite the fact that in the event of the death of the testator, the heirs are obliged to fulfill his debt obligations to the creditor, their liability for debts cannot exceed the value of the inheritance they received.

Example. The son inherited a small business, which experts valued at 1 million rubles, and the loan debt from his late father amounted to 1.2 million rubles. Consequently, the loan payment to the bank will be only 1 million rubles. The bank writes off the balance of the debt of 200 thousand rubles or it is repaid by one of the co-borrowers or guarantors.

Is the guarantor obligated to repay the loan?

Banks mostly issue large loans against a guarantee. Guarantors are guarantors because they take responsibility for the fulfillment of loan obligations by the borrower to the bank.

They can be both close relatives of the borrower and strangers who are not part of the family. Guaranteeing occurs on a voluntary basis, so finding a guarantor is not so easy. Nobody wants to burden themselves with unnecessary problems and additional risks.

Indeed, if something happens, all responsibility for fulfilling obligations to the bank will fall on the guarantors.

If the deceased has heirs, the guarantor can discuss and resolve this issue with them, shifting the obligation to repay the loan to them. This is quite fair.

After all, they received an inheritance, that is, they have a certain benefit, therefore, they must deal with the debts of the testator.

But Russian legislation does not oblige the heirs to pay for the loans of the deceased borrower if they were taken out under guarantee. It turns out that the heirs may refuse and not pay the balance of the debt to the bank.

Then the guarantor will have to do it himself. But at the same time, after repaying the debt of the deceased, the guarantor has every right to go to court and demand that the heirs compensate his expenses for closing the debt on the loan.

In most cases, the court satisfies these types of claims.

Attention! If the guarantor dies without having time to repay the loan for the deceased, his obligations under the guarantee do not pass to his heirs. In this case, the bank simply writes off the balance of the loan as uncollectible.

Are relatives required to pay the loan?

Blood, close relatives or distant ones, it doesn’t matter. None of them is liable to the bank for the debts of the deceased if they do not enter into inheritance rights after his death.

If they inherited the property acquired by the deceased, then along with it the debt obligations.

The debt of a deceased relative is an integral part of the inheritance, so if you do not want to lose the inherited property, you need to be prepared that you will have to pay off the debts.

Many banks, including Sberbank, practice issuing loans with the involvement of co-borrowers. If the co-borrower is one of the relatives or the legal spouse, then the issue with the balance of the debt is resolved in one of the following ways:

1. The co-borrower voluntarily assumes all obligations and repays the loan debt after the death of the borrower on his own.
2. The co-borrower is looking for another joint borrower who would be willing to assume the debt obligations of the deceased and provide assistance in repaying the loan. It is important that the new co-borrower and his level of solvency meet the requirements established by the bank.
3. The co-borrower refuses to take responsibility for the debts of the deceased. Then the bank sells the pledged property. The proceeds cover the balance of the common (deceased and his relative-co-borrower) debt and return the amount paid before the death of the deceased co-borrower.

According to the terms of mortgage lending at Sberbank, the legal husband or wife of the borrower automatically becomes a co-borrower, regardless of his (her) age category and income level. If the co-borrower is the heir of the deceased, he has no right to refuse to accept obligations on the loan. The exception is the case when he wrote an official refusal of the inheritance.

The procedure for resolving the issue of a deceased person’s credit debt is as follows:

1. A death certificate is issued for the person.
2. With this document, the heirs contact the banking institution to report the death of their borrower.
3. The bank stops accruing interest and fixes the amount of the remaining debt.
4. The heir applies to the notary's office with a statement of intention to accept the inheritance.
5. Six months after the death of the deceased, the heir can enter into inheritance rights.
6. After the formal acceptance of the inheritance, you can begin to resolve issues with the creditor bank.

During the first six months from the date of death of the testator and until the official entry into inheritance rights, the heirs may not pay the bank the balance of the deceased’s debt.

Obligations arise only on the day of acceptance of the inheritance.

In practice, it happens that banking institutions begin to actively seek repayment of the debt even before the expiration of six months, but such actions are illegal and have no legal basis.

It is important to present the borrower’s death certificate to the bank as early as possible, since until the death of the debtor is confirmed, the banking institution continues to charge interest.

In addition to the accrued interest, fines and penalties for late payments will be added to the total amount of the unpaid debt, and there will definitely be such penalties, because the borrower has died and there is no one to make regular payments on the loan.

If you delay in notifying the bank about the client’s death, the debt can increase several times before the inheritance.

The heirs can go to court and challenge the amount of the debt. According to federal law, interest and penalties stop accruing on the date of the borrower's death.

Therefore, the court can force the lender to write off fines, penalties and interest accrued after the death of the borrower.

Thus, the amount of debt on the loan after the death of the borrower will decrease significantly and it will become easier for the heirs to pay off the loan and fulfill their obligations to the bank.

If the loan was taken as collateral

Federal law states that if a debtor dies, the outstanding balance on the loan passes to those who inherit his assets. If the property remaining after the death of the deceased was pledged during his lifetime as collateral for a loan, the heirs can:

• pay off the balance of the mortgage debt and remove the lien from the inherited property;
• refuse obligations and not repay the loan.

In the latter case, the bank puts the pledged property up for auction and sells it. With the proceeds from the sale of the collateral, the creditor covers its expenses, including not only the balance of the debt, but also the costs of selling the collateral. The amount of loan payments made by the deceased during his lifetime is returned to the heirs.

Question: who pays the loan after the death of the borrower if there is no inheritance?

Answer: if the borrower did not own any movable or immovable property, but remained in debt on the loan, then the obligation to repay the debt falls on:

• insurance company;
• co-borrower;
• guarantor.

Neither the bank nor the court can oblige the heirs to repay the loan, since there is no inheritance and nothing to accept. If the inheritance is only debts, there is no insurance, there are no co-borrowers/guarantors, these are already problems for the bank. Relatives can safely ignore the demands and claims of the creditor, even if he presents them through the court.

Poll: are you satisfied with the quality of services provided by Sberbank in general?

Question: Is a wife obligated to repay her husband’s loan after his death?

Answer: the wife of the deceased is responsible to creditors and pays off the debts of the deceased husband only in the following cases:

• she was a co-borrower;
• acted as a guarantor;
• is the heir of the deceased.

If there is no inheritance or the widow has refused it, she will not have to pay the balance of the debt. She can also avoid debt obligations if the life of the deceased spouse was insured and the insurance payment covered the balance of the unpaid debt.

Question: Should children pay a loan for their parents after their death?

Answer: children are obliged to fulfill loan obligations and repay the debt of their parents in the event of their death only if they accept the inheritance. If a loan by inheritance after the death of parents went to minor children, their new guardians or trustees must pay off the debt to the bank.

Adults and officially working children can also act as co-borrowers or guarantors for their parents. Then, in the event of the death of the mother and/or father, the debt obligations are assigned to their children, regardless of whether they accept the inheritance or not.

Loan repayment after the death of the borrower: what the law says, lawyer’s opinion, useful tips

Russian laws, in particular Art. 1175, Part 1 of the Civil Code of the Russian Federation clearly interprets the situation when a deceased borrower has a debt in the form of an unpaid loan. Along with the inherited property of the deceased, his relatives or persons claiming the inheritance also receive his debts. Whatever the inheritance is, a small country house or a luxurious house, it does not matter at all. Loan repayment after the death of the borrower passes entirely to the heirs.

For legislative regulations, it does not matter whether the client is mentioned in the testator’s will or he is an heir by law, what is the turn of the citizen who received the debt for the deceased in inheritance. Banks do not care about the identity of the payer; their goal is to return their money with accrued interest.

The law establishes six months as the period for accepting an inheritance after its opening, i.e. after the death of the testator. This period gives all applicants the opportunity to declare their claims to the property.

At this stage, the distribution of shares of the hereditary mass occurs. The process often lasts for years, involving the courts, but banks often do not want to wait and demand payments immediately after the death of the debtor.

Anyone who pays a loan after the death of the borrower should know that the debtor-heir is obliged to answer for the debts of the deceased, based on the volume of his inheritance. For example, if the deceased left a debt of 400 thousand rubles, and inherited 150 thousand rubles, then this is the amount that must be paid to the bank. Several heirs are liable according to the price of the property received.

To pay off the difference, the heir is not obliged to sell his property.

A “posthumous” loan with collateral involves the transfer of this collateral to the heir, for which he can get money by agreeing with the creditor, and pay off the debt with the money.

When an apartment is given to minors by will, the need to pay debts falls on them as well. Debts are assumed by citizens who care for children: guardians, parents.

When family members of the deceased do not inherit anything, but live in the inherited housing and use it, debts do not affect them. But when the apartment is the interest of the bank, the tenants are subject to eviction by court, with the exception of restrictions, the procedure for imposing which is prescribed in the Family and Housing Code.

These include the following situations:

• violation of the rights of minors;
• The residents have no place to live other than the disputed apartment.

If you had insurance

Now many banks offer/impose/force borrowers to take out insurance that covers possible non-payment of the loan in the event of special circumstances: loss of a permanent job, additional income, death of the borrower.

It is necessary to distinguish:

• insurance in case of inability to make payments due to death. The insurance amount is equal to the loan amount;
• death insurance. The insured amount may be greater than the loan.

Heirs should immediately determine the availability of insurance and report the death of the borrower.

The ideal option for both the heirs and the bank would look like this: the bank receives its money from insurers, and the debtor receives an unencumbered inheritance.

However, not every case is recognized as insurance, and the company may refuse for the following reasons.

1. Death occurred from a serious illness. At the same time, it is impossible to prove that when signing the loan papers the client had no signs of illness and did not intend to die. The bank may consider that the borrower may have misinformed it.
2. If the borrower committed suicide. Such a death will definitely not be recognized as an insured event, and the debt will have to be paid off by the heirs.
3. When the contract specifies the expected cases: illness and accident, and the doctors have not determined why the person died, the verdict will be: “The cause of death has not been established.” Insurance will most likely be denied.
4. If you miss the deadline for contacting the insurance company.

The heirs, who will have to answer for “posthumous” debts if insurance is denied, can write a claim, setting out in writing the essence of the case, in the following cases.

1. The insurance decision is positive, but the money has not been paid.
2. The decision is not made for a long time, the fines from the bank are increasing.
3. The company refused and does not respond to the claim. It is recommended to go to court.

If you didn't have insurance

If the deceased, when taking out a loan, refused insurance, the obligation to make payments passes to his relatives, who have the right to refuse if the property is of no value and the amount of the debt is huge. Because expenses will be incomparable with the price of the inheritance; no one can force you to enter into an inheritance.

Most often, the deceased leave housing that belonged to them in whole or in part. If the testator’s share is negligible, and the loan amount is close to a million, then it is not worth taking on the obligation to repay the debt, having the illusory hope of receiving money for this share.

When the amount of debt is many times less than the value of the inheritance, it is better to choose loan repayment.

Inheriting credit debts of the deceased can even be beneficial when, in addition to credit debts, the deceased also left a share in the apartment, where the heirs also have shares. It would be advisable to register an inheritance with the goal of becoming the owners of the entire apartment.

If the heirs are the owners of a home where the deceased had a small share, but the debt is large, then it is better to issue a waiver and try to buy the share at auction.

In what cases is debt passed on by inheritance?

Should relatives pay the loan for the debtor and his other debts, fines, alimony? The Civil Code of the Russian Federation indicates that the heirs must accept the inheritance at a time and in full, and only by writing a refusal can you protect yourself from payments for other people’s underpayments. Not all debts are inherited. For some, obligations cannot be transferred to other persons.

Article 1112 of the Civil Code of the Russian Federation states that the inheritance does not include debts associated with the personality of the deceased.

1. Debt for damage to health.
2. Child support debts.
3. Fines.

After the death of the testator, these debts are automatically canceled and do not go to relatives.

All other debts of the deceased are paid by the heirs, in accordance with the price of the inheritance. These are loans, %% and penalties accrued due to delays, debt to the tax office, unpaid utilities, etc.

Does the bank have the right to demand penalties for the loan from the heirs?

Many citizens believe that they are not obliged to pay money for the deceased’s loan until they have officially entered into the inheritance, which means that fines will not be assessed. This is an erroneous opinion, and since the loan is not repaid after the death of the borrower, the bank takes punitive measures. The bank is not interested in the identity of the person who deposits the money; it is important for it that the money arrives.

The right of inheritance appears immediately after a person passes away, and not with notarization. And after the emergence of a right, an obligation arises; the bank quite rightfully charges fines for the resulting debt, since payments are not made.

How to reduce your payments

How to minimize unnecessary costs in the form of fines? This is stated in Art. 333. Civil Code of the Russian Federation “Reduction of penalties”.

• Let’s say a citizen meets the bank halfway and is ready to repay the loan after the borrower’s death on the bank’s terms; he is not afraid of the size of the debt, and he undertakes to repay the money on time. Banks are loyal to such clients, and it is quite possible to negotiate and conclude a settlement agreement with the bank, according to which the creditor will reduce the amount of fines or may even cancel them altogether.

The debtor-heir can present the case in such a way that the violation of the deadlines for making payments was made due to serious reasons that could not be overcome (the death of the borrower), and not due to negligence or negligence. The court may take such arguments very seriously and consider them convincing if the bank does not consider them important.

• You can solve the problem of repaying the loan and bank penalties radically by not entering into an inheritance and formalizing the refusal in accordance with all the rules, having it certified by a notary. Then you won’t have to spend money on debt coverage or fines. However, it is almost impossible to change your decision later. The bank will still insist on repaying the “posthumous” debt, but you can negotiate with it about penalties.

If the borrower died and left the loan unpaid, the most unenviable fate awaits his guarantor/co-borrower, because the guarantee agreement clearly states that he is responsible for fulfilling the loan obligations for the borrower either when the debt is transferred to another person, or when the borrower died. Unlike the heirs, who receive at least something, the guarantor receives nothing except the obligation to pay someone else's debt.

The guarantor is responsible not only for paying off the total debt, but also for returning money for legal proceedings. When the heirs have formalized the refusal, the bank pays full attention to the responsible person of the deceased client and will charge the guarantor not only the total debt on the loan, but also the fines and interest that accumulated while the heirs were preparing the refusal.

To find funds to cover the debt, the guarantor may claim part of the inheritance from the abandoned heirs.

Conclusion

When concluding a loan agreement, most borrowers prefer not to think about death, receiving into their hands not only the borrowed money, but also the obligation to return it to the bank. Still, you should take care of your loved ones and minimize possible risks. To do this, you need to pay attention to insurance.

Today, this is the best way to protect your loved ones from possible financial troubles in the future, and you should never hide your loans from them so that there are no surprises. Well, if you inherited an inheritance with a lot of debts, it would be cheaper and calmer to refuse it.

Who pays the loan if the borrower dies and how not to pay the loan of the deceased

When a borrower takes out a loan, he is interested in the interest rate and terms. Most clients do not think about who will cover debt obligations in the event of death. However, experts recommend familiarizing yourself with this point. If the borrower dies, who pays the loan is a question that will be addressed below.

Do I need to pay a loan for a deceased person?

The procedure for closing the agreement depends on the type of loan.

Consumer loan

Rules for closing a loan, depending on the terms of the agreement:

1. If the loan was issued for several people and all co-borrowers are indicated in the agreement, then the loan must be repaid by the remaining participants in the agreement. The amount is divided into equal parts between the co-borrowers.
2. If the borrower took the money with the participation of a guarantor, then this person is responsible for closing the agreement. The guarantor, through the court, may demand payment of compensation from the heirs, if any.
3. If the loan was secured by property, then real estate, vehicles, securities are put up for auction and the contract is closed with the proceeds. If the amount of the property sale is greater than the loan amount, then the remaining money is divided among the beneficiaries.

Thus, to the question: “If the borrower dies, who pays the loan without a guarantor, co-borrower and collateral?”, the answer will be unequivocal - the heirs pay the loan.

Mortgage

According to current legislation, which is still relevant in 2023, the mortgage after the death of the borrower must be paid by the heir.

So, after the death of a spouse, his wife is obliged to make payments, even if the spouses divorced, but the wife accepted the property of her ex-husband.

If the receiver does not have such an opportunity, the apartment for which the mortgage is issued, as well as all collateral, are put up for sale. Money deposited earlier will be returned to the beneficiaries of the deceased borrower.

Subtleties of repaying a loan with insurance

Features of closing an insured loan

The policy increases the likelihood of approval for the issuance of funds and helps reduce the burden due to a reduced interest rate.

If there is insurance, then the relatives of the deceased are released from payment obligations, since the remaining debt is covered by the insurance company.

If the amount of payments is less than the amount of insurance, then the remaining funds are received by the receiver specified in the agreement between the Client and the Company.

However, the insurance company may not cover the loan debt in the following situations:

• the client died due to illness and there is no way to prove that it appeared after concluding an agreement with the company, the insurance organization may claim that it was misled and the client knew when applying for a loan that he would not be able to close it and committed fraud;
• the client committed suicide;
• the cause of the borrower's death has not been established;
• the deadlines for contacting the insurance company were overdue, with the exception of situations where the deadlines for contacting were violated for valid reasons.

Payment of the loan balance by heirs

According to current legislation, the loans of a deceased person are required to be repaid by the beneficiaries, and they must do this depending on the shares of the inheritance. The procedure for closing a loan should be discussed by the bank with citizens before entering into inheritance. If this is not done, then the discussion of making payments will take place in court.

You cannot refuse only part of the inheritance. Relatives get everything or nothing.

If the institution does not demand payment of borrowed funds from the beneficiaries within six months after the death of the relative, then the beneficiaries have the right not to repay the loan. However, the bank can go to court. If a positive decision is made on the claim, the agreement with the institution will have to be closed.

Receivers under 18 years of age

If the beneficiaries of the borrower are minors, then the debt goes to the parents. For example, if the father has a son, then the mother will make the payments. Not entering into inheritance rights is permitted only by decision of the guardianship authorities.

Lack of receivers

How to avoid paying a loan for a deceased relative?

Relatives have the right not to make payments for the deceased person who took out the loan if there is no inheritance. In other words, giving up the property releases you from closing the agreement.

It is advisable to do this if the loan size is greater than the value of the inheritance. You can waive your rights within 6 months after the death of a relative.

If you do not go through the appropriate procedure during this period, the loan will be required to be repaid through the court.

Sanctions for late payments

Interest on borrowed funds continues to accrue even after the death of the deceased. Penalties are charged from the first day of delay. This is what Sberbank and most other institutions do.

How to reduce the amount of payments?

You can ask to write off interest, penalties and fines if the amount of payments is less than the amount of the inheritance. Most lenders accommodate clients halfway. If the client is refused, he can go to court. Most claims are satisfied because many had no idea about the relative’s debts, so the lack of payments is a valid reason and the court writes off penalties and fines.

Legislation to the question: “Who pays the loans of a deceased person?” does not give a clear answer. It all depends on the type of loan and the terms of the agreement. The receiver is obliged to repay debt obligations only if he has entered into inheritance rights, and the relative took out a loan without collateral, guarantors and co-borrowers. In other cases, close people are exempt from closing agreements.

Who should pay if the person who took out the loan dies?

No one is immune from accidents and long-term illness. What to do if a person dies, and what remains from him is not only an inheritance and bright memories? And who is obliged to pay the loan in the event of his death?

Who should pay the deceased's bills?

After the death of a family member, there comes a period of worry, and, as a rule, the loved ones of the deceased borrower are grief-stricken. Which, unfortunately, can also be used by bank employees, since the most important thing for them is to receive timely payment on the loan. As a result, family members of the deceased may continue to pay his bills, not knowing that they are simply not required by law to do so!

So, what should be the procedure in the event of the death of the borrower?

• Immediately after receiving the death certificate, you should contact the bank with a written application to stop the accrual of penalties, arrears and penalties on the deceased’s credit account. A copy of the certificate must be attached to the application. As a rule, banks accommodate relatives in this case. It is necessary to indicate the period for suspension of payments within 6 months from the date of submission of this application to the bank - since during this period the inheritance takes place. That is, the heirs must receive a deferment on the loan.
• You should not make any payments on the loan until you immediately enter into inheritance. According to the law, relatives of the deceased who have not entered into inheritance rights are not required to make payments on his debts and loans! You should also not hide the fact of the borrower’s death from the bank by simply making payments for him, since no one needs extra expenses in such a situation.
• If the relatives of the deceased have entered into inheritance rights, then credit obligations on his accounts are automatically transferred to them. There is one limitation - the heirs are liable for debts only to the extent of the value of the inheritance they accepted. All heirs who accepted the deceased's inheritance are jointly liable for his obligations - that is, one of them is not obliged to pay the entire debt. Payments on the loan must be made by them in proportion to the size of the inheritance they receive. If the heirs want to repay the loan ahead of schedule, they can do so at any stage. More information about how to act more profitably when closing a contract ahead of schedule is provided in this article.
• If after the death of the borrower there is no property left and he has no heirs, then the bank does not have the right to recover his debts from the relatives of the deceased. If, under pressure from bank employees, they made payments to repay the debt, they have the right to get this money back by going to court and demand a fine from the bank for illegal use of someone else’s money.
• If there is no inheritance or all the heirs refused to enter into their rights, then the bank is obliged to write off the debt of the deceased. This usually happens in court, but the relatives of the deceased should not be afraid of this. In the absence of a certificate of inheritance, the bank will not be able to claim a single ruble from them through the court.
  • We have collected original reviews on this topic here, reviews from real people, many comments, worth reading.

Also, if the borrower’s life and health insurance was taken out, you should contact the insurance company within 30 days from the date of his death with a full package of documents and write a statement about the occurrence of an insured event. If the circumstances of the death meet the conditions for the occurrence of an insured event, then the insurance company will be obliged to pay an insurance premium in the amount specified in the contract. If the beneficiary of this agreement is a bank, then the funds will be transferred to repay the debt.

Apply for a cash loan right now ⇒ If you want to know how to get a loan without refusal? Then follow this link. If you have a bad credit history and banks refuse you, then you definitely need to read this article. If you just want to get a loan on favorable terms, then click here. If you want to apply for a credit card, then follow this link.

The man died, the loan remained. What to doSource: https://kreditorpro.ru/kto-dolzhen-platit-esli-chelovek-vzyavshij-kredit-umiraet/

They take out loans. But man is mortal, and often suddenly. Therefore, the situation when a person dies and a loan remains is standard and relevant for many. It is at this difficult moment, when relatives and friends are disoriented by what happened, that we have to deal with the problems of inheritance - including the negative side of inheritance - the issue of inheriting a loan (loans).

The most important thing you need to know in a situation where a person has died, the loan remains:

within 6 months (the period of entry into inheritance) after the death of the borrower, the bank or microcredit organization does not have the right to charge interest on the loan of the deceased and demand payment of the loan and interest on it from the heirs - provided that the corresponding application is submitted to them.

Let's look at the main problems and ways to solve them.

How does the bank know that the borrower has died?

The bank becomes aware of the death of the loan borrower when there is a delay in repayment: for large banks this can even happen 2 or 3 months later.

As soon as the debtor stops communicating, credit managers come into play - they contact employers, relatives, and other available contacts leading to the debtor.

At the same time, while the “search work” is ongoing, the bank continues to charge interest on the debt and fine for non-payment.

If bank representatives insist on early repayment of the debt, they have to turn to the courts. For relatives of the deceased, there are some simple tips on how to act in such circumstances.

The man died, the loan remained. Solutions.

Stop repaying the loan and interest on it - immediately submit an application to the bank

As soon as you have the death certificate in your hands, immediately go to the bank and write a statement that penalties for penalties and accrual of interest will stop for the next 6 months - this is the legally established period for entering into an inheritance.

Typically, this document is sufficient for the bank to cease operations on the deceased's existing loan. However, among banking organizations there are unscrupulous ones (or individual employees in the latter) who deliberately advise relatives who have not yet become heirs not to stop repaying debts on the loan of the deceased.

Remember: this is a distortion of legal norms, and is often well-prepared brainwashing!

Until you are an heir, don’t pay!

From the point of view of the law, even the closest people of the deceased simply have no obligations to anyone until the entry into the right of inheritance is completed. We are accustomed to the fact that the connection “pay for it, you were a family” is always implied, but entering into inheritance is such a connection, legally certified.

Statements to the contrary are clever tricks. Many people don’t even realize this, simply continuing to pay the loan for the deceased, so as not to inform the bank about the very fact of death (based on the logic “we’ll finish it ourselves”).

When a loved one has passed away, financial expenses are inevitable - do not spend your savings ahead of time.

You cannot pay more than the inheritance is worth

Indeed, after the 6 months required by law, if the relatives of the deceased have become legal heirs, the entire “volume” of the latter’s inheritance passes to them - including the loan debts left by them.

The branch of law dealing with inheritance issues uses the concept of “universal succession” for this purpose.

You should pay attention to the following nuance: previously, banking organizations could, through the court, demand collection of only the remaining debt + interest on it, which was accrued on the date of death of the borrower. To date, a number of legislative amendments have been adopted that have expanded the rights of banks to claim interest accrued after death - be careful in this matter.

Difficult situations when a person died, there was a loan left

When several people become heirs at once, their responsibility for paying debts becomes collective.

In turn, the bank can now choose who to submit a request for payments to - all at once, or someone specific (of course, limited to the value of the inherited property).

A common example of such a situation is when an apartment remains, and the ownership rights to it are shared; then the new owners will be forced to repay the loan for the apartment in the same shares in which they own it.

Are there situations when a bank prevents you from entering into inheritance rights? Yes, if the loan is secured by collateral (loan for a car, for an apartment).

The fact is that, although both the debt and the collateral are inherited at once, the organization issuing the loan has the so-called

“priority right” to force the heir to pay off the debt with the help of a pledge - therefore, entry into the inheritance is delayed until the disputed points regarding the debts of the deceased are resolved.

Cases where the inherited loan was issued under a guarantee certified by third parties are considered especially difficult.

One of the important criteria here is: can the deceased person who took the loan be called conscientious? If so, and the person paid the debt on time, the remaining financial obligations will pass to the relatives who have entered into inheritance rights (the credit institution will not be interested in involving guarantors in the matter).

However, having paid the debt obligations, the latter has the right to demand the same amount from relatives who have entered into the right of inheritance. He paid for the deceased, and the heirs will pay him: the legal lexicon calls this a “recourse claim.”

No inheritance - no loan

The most common are two situations: when the person who took out the loan did not leave any property as an inheritance, or when relatives for various reasons (for example, not wanting to burden themselves with purchase and sale matters) completely refuse the inheritance.

In the first option, if the deceased did not leave property that can be inherited, then no one can enter into inheritance rights - and, accordingly, none of the relatives is anymore obliged to pay the balance of the debt.

The very meaning of “inheritance” is positive: you can only inherit something that is worth something (but also debts along with this something). “Negative inheritance”, according to which only debts would be inherited, is simply legally unacceptable.

For this reason, if repayment of the debt continued after the date of death of the borrower, all payments made to the banking organization can be demanded back by the relatives, and the court will be on their side.

Moreover, they should also be refunded interest for the fact that their funds were illegally used for some time - bank representatives are required to know the relevant legal norms.

In the second case, if there is still an inheritance, but the legal heirs of the deceased, for their own reasons, chose not to inherit the property, no obligation to repay the loan passes to them. What happens then? The answer lies in who becomes the new owner of the inheritance.

In the event of refusal by the legal successors, as well as their refusal in favor of some other heir, the property is declared escheat (Civil Code of the Russian Federation, Article 1151) and becomes the property of the Russian Federation (state).