What happens to a car loan when someone dies

what happens to a car loan when someone dies

killer_blow said: 01-21-2007 05:53 PM

What happens to a car loan when someone dies

My father passed away in December 2006. This is in Texas. He had a car loan on his car but my mother no longer wishes to keep his car. He was the only one on the loan, my mother is not listed at all on the car loan or title.

Does she have to continue to make payments on this loan or can she simply return the car to the Credit Union that financed it.

The payments are up to date. I have been told that she could simply return the car and provide a copy of his Death Certificate but

I want to make sure she would not be liable to complete the loan.

The loan was taken out in 2005 and is for five years.

Mr. Knowitall said: 01-22-2007 05:32 AM

Re: What happens to a car loan when someone dies

jk said: 01-22-2007 02:41 PM

Re: What happens to a car loan when someone dies

be aware that the credit union could make a claim against his estate for any money still owed to the credit union after they dispose of the car.

conversely, if the car is worth more than what is owed to the credit union, the excess money should be returned to the estate.

Source: www.expertlaw.com

Category: Credit

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