- USDT(TRC-20)
- $0.0
Americans have a lot of debtâmore than six figures' worth on average, which is kind of a mind-blowing number. Itâs difficult to get through life without incurring at least some debtâbuying a house without a mortgage is a challenge for most people, and a lot of folks find themselves relying on credit cards now and then just to get by. And debt causes us a lot of stress and anxiety, which is why our first reaction when weâre contacted about a new debt is often panic.
But before you assume youâre on the hook for a debt, itâs usually worth it to take a breath and dig into whether youâre actually responsible. Just because a debt collector or business contacts you about a debt doesnât mean youâre legally responsible for itâbut if they can get you to pay it anyway, thatâs great for them. If youâre being asked to step up for a debt that you either didnât personally incur or believe you paid off, hereâs what you need to know.
First, broadly speaking, youâre probably not responsible for someone elseâs debts, even if it seems to make sense:
When it comes to debts that someone claims you owe personally but youâre not sureâwhether you think youâve already paid it off or because you canât be sure you actually incurred the debtâyou can take a few steps to figure out if you actually have to pay it:
But before you assume youâre on the hook for a debt, itâs usually worth it to take a breath and dig into whether youâre actually responsible. Just because a debt collector or business contacts you about a debt doesnât mean youâre legally responsible for itâbut if they can get you to pay it anyway, thatâs great for them. If youâre being asked to step up for a debt that you either didnât personally incur or believe you paid off, hereâs what you need to know.
These are not your debts
First, broadly speaking, youâre probably not responsible for someone elseâs debts, even if it seems to make sense:
Deceased relatives. If the debt belonged to a deceased parent or other relative, youâre probably not responsible for itâunless you co-signed a loan with them, held an account jointly with them, or you were the executor of their estate and paid yourself an inheritance without settling the debt. Debts left behind have to be paid from the estate, not from a relative or childâs pocketâitâs actually illegal for them to try to get relatives to pay the debt.
Spouses. How debts are handled in the event of a spouseâs death or divorce depends on whether you live in a Community Property State (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) or a Common Law Property State (everywhere else). In Community Property states, the marriage (i.e., the community) shares most debts incurred during the marriageâeven if only one spouse was involved. In Common Law states, however, youâre usually only responsible for your own debts even while married, so only joint debts (like a credit card with both your names on it) or debts that benefit the marriage are shared.
Non-relatives. Again, unless you co-signed something or entered into some other contractual agreement to share a debt with someone, you canât be held responsible for someone elseâs debts.
How to tell if you need to pay a debt
When it comes to debts that someone claims you owe personally but youâre not sureâwhether you think youâve already paid it off or because you canât be sure you actually incurred the debtâyou can take a few steps to figure out if you actually have to pay it:
Check the date. In most states, thereâs a statute of limitations on debt of about six years. At that point, you still technically owe the debt, but you have no legal obligation to pay it (it can still show up on your credit reports, however).
Demand information. If youâre not sure if the debtâs really yours, contact the collection agency or business and request more informationâincluding the name of the creditor (and the name of the original creditor, if the debt has been sold), the amount owed, and the date the debt was created.
Dispute. If you donât think the debtâs really yours, submit a dispute to the business or collection agency in writing within 30 days of receiving that information (whatâs known as a âvalidation noticeâ). Provide proof of payment if you have already paid the debt, and bone up on what collection agencies can and canât do in pursuit of a debt.
Research. If you have trouble getting information from the collection agency or the original creditor, you can research your own debt history by pulling your credit reports, checking old records (like bank and credit card statementsâyou can contact your bank and credit card company to request old statements), and old correspondence like email. If you canât verify the debt on your end, file a dispute.