Paying Off Payday Loans

Responsibility of children and parents’ debts – who pays the obligation – Debt Consolidation

22. Sep, 2019

It is estimated that around 1.8 million Poles have overdue debts. They also include online loans. Although they are mostly used by young people, there are many situations in which this form of support is also used by older people or middle-aged people who are not always able to pay their debts.

Can then the responsibility for paying off the loan go from parents to their adult children? When is the offspring responsible for the parents’ debts and how can this be avoided?

What parental commitments can go to children? Are online loans also?

There is no marital property community between parents and children, which is why creditors have no legal basis to enforce debt payments from the debtor’s offspring. Of course, there are a few exceptions to this rule.

Parents’ debts, including online loans, can be passed on to children, provided that the child entered into the loan agreement as a guarantor. In this case, however, everything depends on our conscious decision, the consequences of which we must take on ourselves.

It happens, however, that the assumption of debt is unconscious. Online loans do not apply to this situation. It is about accepting a donation from parents, which, as it turns out later, is burdened with debt. Receiving real estate is a classic example.

Another case is a donation from a parent who has outstanding financial obligations. The creditor may consider that it was an element of indebted property, the lack of which makes it difficult to collect debts. Then responsibility also lies with the children.

When are the parents’ debts going to their children?

Yet another case is the death of a parent. According to the law, a legitimate heir takes over not only the property of the deceased person, but also his obligations. This group may include any debt, including unpaid online loans, which we are not entitled to terminate.

Accepting an inheritance from a parent with whom we have not been in contact, for example, can be very risky. Debts can be hidden and their value exceed the value of inherited goods.

Somehow avoid responsibility for parents’ debts?

However, a parent’s death does not have to mean taking over his debts. A person who considers such a step as risky has two choices. The first is simply to reject the inheritance that must be made in writing. In uncertain situations, there is one more possibility.

Accepting the inheritance with the benefit of inventory means that we accept the inheritance together with the liability for debts, but only in the amount corresponding to the value of the property.

In this way, we secure our interests if it turns out that the parent has any debts, including incurred and outstanding loans online.

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