Comments on: What happens if a person dies after taking a personal loan?

By: venus772

venus772 — Sun, 14 Sep 2008 10:39:04 +0000

I would assume that if they applied for an beneficiary then that person would be entitled to the funds.. Or maybe the next of kin. Or, they just give it to relatives of the deceased. If not anyone, I guess they would bank the money back into the account.

By: MadMan

MadMan — Sat, 13 Sep 2008 19:12:26 +0000

The estate has to pay back the loan. If there is not enough in the estate, then the lender takes a loss.

By: lestermount

lestermount — Thu, 11 Sep 2008 12:06:15 +0000

It depends. Some people take out insurance to cancel the debt. Sometimes there could be collateral. The estate may owe the debt.
The bank can not take all of th assets that belong to the person without legal action.