There are people who are especially proactive when hiring a personal payday loan and who even ask themselves this question: “If I die: what happens to the debt of my personal payday loan? “Today, from Good Finance, we give you the answer so you can stay much calmer.
What happens to a personal payday loan if the holder dies
Normally, when a person applies for a personal payday loan, he does not think that he is going to die soon and will leave the debt to his heirs. But it is important to know the answer; Especially before requesting it.
Are debts inherited? Of course it is. At the moment in which the holder of a personal payday loan dies, his heirs receive both the assets and the credits and loans of the deceased, personal or mortgage.
The Civil Code establishes that inheritance is a right, not an obligation. So if you decide to inherit, you have to do it with the good and also with the bad. That is, with assets, rights, obligations and debts. This is why it is very important to know if the deceased has left in inheritance debts and what the amount is, in order to know if the inheritance is profitable or if it is better to give it up.
Therefore, an inheritance should not be accepted without first knowing the economic status of its assets and liabilities. And see if we win or lose.
What possibilities do we have?
When a family member dies and leaves their property, we have several options. One of them is to accept inheritance and receive assets and debts.
The second option is to give up inheritance formally, by notary and in writing. If the heirs of the first line of succession reject it, it would go to the second line and so on. If no one accepts it, it goes to the State or the Autonomous Community to which the deceased person corresponds.
Do you usually hire life insurance?
Ideally, these uncomfortable situations never have to occur, only at the time when debts are contracted through loans, personal payday loans or mortgages, many banks already oblige the holder to take out life insurance.
However, now that you know all this information, it is important that you accept or reject the inheritance only if it is worth it, because you will also inherit the debts. Keep in mind that if you had an insurance or policy you could take care of the debt, or opt for inventory benefit.
personal payday loans with transparency? In good finance
Through Good Finance you can apply for a personal payday loan if you need it. In addition, we are completely transparent with what we offer and we will always answer all your questions, so you don’t have to worry about anything.
Check out our loan website or download our app to save. You will have a financial advisor at your side at all times, so you can have up to 50,000 euros if you need it.