Inherit debt?

[Allgone]

Hi all,

I have a question about inheritance in Japan.

Do Japanese inherit the debt of deceased family members?

For example, would a husband or daughter be responsible for an outstanding unsecured, non-guaranteed bank loan taken out by the mother of the family before she died.

Thanks for any help anyone can offer.

 

[undrentide]

According to a website by a law firm, one automatically inherit after the death of the family, even it is debt.
To not to inherit the debt, one needs to submit the documents for 窶佛?窶伉ｱ窶｢ﾃｺﾅ?ﾃｼ inheritance waiver to 窶ｰﾃ??凖ｫﾂ催吮?敖ｻﾂ焦? (family court).
Basially this process must be done within3 months from the date one learned about the inheritance (though there're exceptional cases.)

http://www.ohtsukadai.com/souzoku/d_zero.html
http://www.ohtsukadai.com/souzoku/d_aband.html

The best thing is to consult the professionals - in this case lawyers.

 

[Allgone]

Experience with this, anyone?

Thanks for the reply, tide. That was useful info.

Has anyone actually been in this situation?

 

[nice gaijin]

just from a pragmatic standpoint, the company that lent the money is probably going to want it back, regardless of where it comes from.

 

[Allgone]

Thanks Nice,

What you say is true, but in many countries a debt dies with the debtor unless it is secured or guaranteed, regardless of whether or not the debtor has living relatives/heirs.

That's why banks set interest rates according to risk. Credit card debt is unsecured and not guaranteed, therefore the rates are high.

So my reason for posting the original question is to find out if an unsecured, non-guaranteed debt dies when the debtor dies in Japan. Or is the debt passed on to relatives/heirs/next of kin?

If a lender takes a greater risk in return for high rates, I don't see why they would feel entitled to collect from someone else when the debtor dies and their gamble does not pay off.

Would they?

 

[Ewok85]

just from a pragmatic standpoint, the company that lent the money is probably going to want it back, regardless of where it comes from.

The difference being that in most places they write the debt off as the person they have a contract with is no longer living.

 

[GaijinPunch]

I've had debt collectors try to collect debts from roommates that left Japan. In Japan, you are your brother's keeper... no doubt about it. But, as stated above, the best thing to do is to consult a lawyer.

 

[FrustratedDave]

I've had debt collectors try to collect debts from roommates that left Japan. In Japan, you are your brother's keeper... no doubt about it. But, as stated above, the best thing to do is to consult a lawyer.

Who did they borrow from "Manda san"! LOL

 

[Allgone]

Thanks to those of you who put me on the right track.

The answer is that next of kin inherit debt as well as assets.

But you can waive your right to inherit both of them if the debt is greater than the assets. The assets would then go toward paying off the debt.

This is a family court matter.

Cheers.