What Happens To Your Debt after death In Canada?

Table of Contents

Can I Inherit Debt After Someone’s Death?

Many questions arise when a loved one passes away, you may be concerned that the debts of your loved one will be passed along to you. So, it’s important to know that debts cannot be inherited. You cannot leave your debt to someone. In this article, we will discuss what happens to debt after death in Canada.

You cannot be liable for someone’s debt due to death, unless you are a joint debtor, or you are a guarantor.

Let’s Talk

What happens to your mortgage after death in Canada?

With a Mortgage, typically in a marriage, the married couple are both usually on the mortgage agreement, so in this case when one of the spouses dies, then the other spouse will be legally responsible for the remainder of the mortgage. Hopefully, there will be a proper insurance plan to help protect the other spouse in these situations.

What happens to your credit card debt after death in Canada?

For the debt of the individual that died, the proper procedure is for the lender to go through the estate to gain payment for the outstanding loans. If there are assets upon death, then the trustee/executor of the estate will be responsible for making sure that any loans/bills are paid via the proceeds of the deceased estate.

Typically, all creditors will need to be informed upon the death of the individual, and a copy of the death certificate may be necessary. You will need to make sure that all accounts are then closed.

Before any assets can be distributed, the debts of the deceased will need to be dealt with first. Once that is done, then the assets can be passed on to the heirs.

What if there is no money to pay the debt after death?

If there are inadequate funds to pay off the deceased debts, the remaining debts will not be able to be collected, unless any of the debt has been guaranteed or any of the debts are joint. It is also possible for a deceased person’s estate to apply for insolvency proceedings. But first, the executor will have to obtain a court order allowing the estate of the deceased person to file an assignment in bankruptcy or file a proposal. However, the creditors will still be able to pursue the guarantors and joint debtors, if any.

It is important to remember that with debt, you are only responsible for the debt that you have signed for, co-signed, have a joint loan or agreed to pay. It is very important to know exactly what debt you are responsible for paying.

Take Your First Step Towards A Debt Free Life

If a loved one has recently passed away with debt and you are not sure what to do, get in touch with the Licensed Trustees at David Sklar & Associates. Our trustees will help you weigh all of your options, and explain your rights.

Book your free confidential consultation with David Sklar & Associates today and make a decision your future self will thank you for.

Let’s Talk

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

I was quite nervous and a little embarrassed that I needed financial advice. I met with Jerry Janiec and he was very helpful. He made me feel comfortable and explained everything in easy to understand terms so that I understood what my options were. I would recommend David Sklar & Associates for anyone in my position.
Melissa Blackburn
19:53 17 Nov 22
I was fortunate enough to be referred to David Sklar & Associates Inc. by a family member. Now in the10th month of a Consumer Proposal process, I am very impressed with the organization, professionalism and impeccable customer representation that I have experienced. To this effect, I amparticularly thankful to Jerry Janiec and Rhoda Lewis for their excellent work.
Suzanna Vaclavik
12:21 16 Nov 22
Recently dealt with Christine at David Sklar & Assoc. and worked out a Consumer Proposal to put forth to my creditors for my Credit Card debt. She was very courteous, professional and put me at ease with a proposal that I can afford on a monthly basis, which will eliminate my debit in a reasonable timeframe. I would recommend Christine and this firm in a heartbeat. Very happy with the service and attention I got !!
Patrick Kovanchak
01:59 15 Nov 22
Excellent customer service. Special thanks to Olga for being prompt and helpful. She’s a star. Bibi is helpful as well. Great agency to work with.
Fady Tadros
19:28 14 Nov 22
After seeing your commercial play on CP24, I realized that it addressed all the questions and concerns I had about my financial situation. It all started with my one phone call to your office. I had the extreme pleasure of working with Cori Naron at your St. Clair West office in September 2022. She took the time to explain what my options were knowing that it was a very stressful situation with my debt load. She made me feel at ease with my decision to file a consumer proposal and outlined the benefits to me. She is thorough and her attention to detail is outstanding. While it takes a little while to reap the benefits of making this hard decision, she took the time to reassure me that it was in my best financial interest. Well done David Sklar & Associates for having such an amazing representative at your company and for allowing me to "get a fresh start"!
14:31 14 Nov 22
Very highly perfection individual, well executed and greatly knowledgeable in his work, which guided me me the right decisions making opportunities. Thank you.Sincerely, Peter Romasz
Peter Romasz
20:18 13 Nov 22
Trina Powell was very helpful and made the process very easy. Thanks again for all your help.
Jennifer Hager
17:59 06 Nov 22
Jerry is a caring, trustful, knowledgeable and competent Sklar associate. He understood my needs and quickly went to work on my behalf. Ever indebted to David Sklar and Associates and especially to Jerry for his professionalism and caring approach.
David Craig
19:31 31 Oct 22
Jerry Janiec is very knowledgeable and very helpful everything he explained to me was straightforward and very easy to understand. I'm very pleased to be working with Jerry to become debt free. I will definitely be recommending to any friends or colleagues your services.Thank you again for helping me get on the road to be debt free. 5 Stars is well deserved.
Christopher Rakobowchuk
17:41 27 Oct 22
Hi there! I am very glad to met this company, especially Jackie Stanley. Thanks for her great work and help me to save my money! Very appreciable!
Mehri Agil
02:43 26 Oct 22
DS david skalr icon

Book your free consultation.

Call 1-844-962-9200 or fill out the form below.

We know this is stressful, but you’re not alone. It’s going to be okay. 
Book your free consultation today. We’ll do the rest.

Contact Us