inheritable gambling debt?

Discussion in 'General' started by flyingwind, May 7, 2011.

  1. flyingwind

    flyingwind Well-Known Member

    Is gambling debt inheritable?

    If you rack up 5 million in gambling debt, your estate is too small to pay for the debt (and your bankroll was demolished when you overbet the bankroll) , and on top of that you die. Does your spouse suddenly have 5 million in gambling debt?

    Assume your spouse is deceased. Do your children inherit your gambling debt?
  2. zengrifter

    zengrifter Banned

    Maybe, it is a bad check, right? zg
  3. johndoe

    johndoe Well-Known Member

    I don't think any kinds of debts can be inherited, aside from those held by a corporation (which could just close).
  4. MangoJ

    MangoJ Well-Known Member

    Not sure about mortages. But in this case the house may be owned by the bank in the first place (or bundle the mortage contract with a life insurance).
  5. blackchipjim

    blackchipjim Well-Known Member

    Estate Debt?

    If there was a will probate court procedings would determine what debt and liabilities would be settled. When a person dies it's a matter of public record and the person or et'al is really responsible to make claim against the estate. You ask a simple question with a complicated answer and alot has to be taken into account.
  6. shadroch

    shadroch Well-Known Member

    Is the marker on a joint checking account? If so, the death of one person doesn't change anything.
  7. johndoe

    johndoe Well-Known Member

    Right. In the case of a mortgage, it's just a specific kind of loan that uses the house as collateral. The owner is still the owner, and it becomes the bank's property only on default (foreclosure). If a house was inherited with a mortgage, the new owner would still have the debt of course. Though they might be able to waive ownership.

    As for gambling debts, unless they're owed to an extra-legal entity (mafia!), there is no possible way for them to be inherited. They'd have to get in line with everyone else with a debt claim on the estate.
  8. WRX

    WRX Well-Known Member

    Debts are never "inherited." And except in a few specialized circumstances like a debt incurred for the purpose of furnishing the common necessaries of life, the law does not saddle a married person with a spouse's debts.

    A couple of caveats, though:

    (1) In community property states, the entire community property interests of both spouses are subject to the enforcement of a judgment against either spouse for a debt incurred during marriage. That liability will survive the death of a spouse.

    (2) In probate or similar proceedings, a process will be provided for the settlement of creditors' claims. Debts will typically have to be paid before any of the decedent's property can be distributed to survivors, by way of bequests in a will, distribution through a trust, or intestate succession, in the case of someone dying without a will. If a survivor receives property of a decedent informally, without probate or similar proceedings, he may become liable for the decedent's debts, up to the value of the property so received.

    Individual circumstances could change the result, so anyone faced with an actual possibility of liability should consult legal counsel. (And if the debt was incurred to the Corleone Home Loan Co., they might have a different attitude about the whole thing.)

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