 TITLE: How to Build and Maintain Good Credit at Every Stage of Life CONTENT: What Happens to Your Debt and Credit After You Die?\n---------------------------------------------------\nWhen a person dies, that information must first get flagged to the credit bureaus so they can note it on the credit file. This process can help prevent identity theft in the deceased person's name.\nOften, family members of the deceased will alert creditors that the borrower has died and that the account should be closed. Lenders then let the credit bureaus know. Accounts for people listed as deceased will be deleted after a year, and a credit file will disappear once there are no accounts associated with it.\nIf you die with debt in your name, what happens to it depends on whether it's backed by collateral or not. In the case of a mortgage or car loan, the lender has the ability to collect on your debt using the value of those assets. Your estate may pay off those debts or sell property to settle them. Unsecured debt like credit card balances will often also be paid by your estate before your heirs can get money you left them—but only if your estate has the money to pay off the debt. If not, the lender will not be repaid in full. END