Who owns your car?

[George Selby]

At 08:26 PM 9/30/2005, you wrote:
>I suspect that the bank has to absorb the loss - what are they going to 
>do, ruin the deceased credit rating?  Holding a note on collateral that is 
>worth less than the debt ends up being the lienholders problem if the 
>debtor dies (or files bankruptcy).


I believe the estate (that's why you have to run a newspaper ad requesting 
any persons or businesses to identify themselves) still owes the money, and 
the bank could come after the estate to collect.  If the executor doesn't 
pay off all debts, then they are in breach of their fiduciary duty to the 
court, and could be liable.  The job of the executor isn't just to the divy 
up the assets and leave the debts unsatisfied, they are to pay off debts, 
then distribute the remainder.

George Selby