 TITLE: What Happens to Credit Card Debt When You Die? CONTENT: Assets That Are Protected From Creditors\n----------------------------------------\nIf you discover that a spouse or other relative's credit card debt was bigger than their estate, will you have to empty your bank account or hand over your spouse's life insurance to pay the credit card companies?\nWhile debt such as mortgages and car loans is secured by collateral, credit cards are unsecured loans, which tend to fall at the bottom of the priority scale after a death. If your estate doesn't have enough money to pay all your debts, state law will determine which creditors are the highest priority. In many cases, unsecured debt will not get paid.\nIn addition, the following types of assets are protected from creditors in the event of a death:\n*   Retirement accounts, including employer-sponsored 401(k) or 403(b) plans, Solo 401(k) plans, SEP IRAs, Simple IRAs or Roth IRAs\n*   Life insurance proceeds\n*   Assets held in a living trust\n*   Brokerage accounts\n*   Homes, depending on state law and how title to the property is held\nCredit card companies may contact survivors after a death to get information such as how to contact the executor of the deceased's estate. However, they cannot legally ask you to pay credit card debts that aren't your responsibility. If you're not sure what your responsibilities are, consult an attorney familiar with estate law in your state. END