Question about inheritance when in debt

**onionlover** · 12-01-2009, 04:50 AM

If a person inheirts money while deliquent on debts will the debt collectors be notified of this?

**Greebo** · 12-01-2009, 06:14 AM

I cannot imagine why they would be unless the debtor has had a judgment filed by the courts against them allowing for garnishing of wages and the like.

But I'm curious as to the reason behind the question - if there is enough money in the inheritance to pay off the debtors and still feed the family, one should do so.

**Lora88** · 12-01-2009, 07:16 AM

Depending on how the inheritance was structured If the money was left in a trust it can be structed so that leins cannot be placed against the money. Since wills are a matter of public record if a collector was aggressive enough and the money owed large enough the collector may come after the estate.

**Greebo** · 12-01-2009, 08:54 AM

Lora: Yes but that isn't a case of the creditors being notified, but them actively seeking out the info.

**Contrary Housewife** · 12-01-2009, 11:48 AM

I don't think anyone 'notifies' them about it. Inheritances aren't like earned income, they don't get reported to the IRS (under a certain level that most ordinary people won't meet). Most banks or estate services doing the distribution of the inheritance won't have any idea you are in debt and probably won't want to get involved. Unless you've already been in court and have judgments and garnishments, like Greebo says.

**Karen1** · 12-01-2009, 02:31 PM

Originally Posted by onionlover

If a person inheirts money while deliquent on debts will the debt collectors be notified of this?

NO
but I didn't read the long long responses to changes to your original post..............but if you get big money and own big long overdue monies---pay it!