Deceased spouse forged CC applications, is living spouse liable?

[teflon]

My mother recently passed away and we discovered huge unsecured debts across many creditors. We are finding that some (if not all) of these accounts were applied for using a forged application that had my surviving father listed as a primary or co-applicant. My mother forged fathers signature on application.
My mother had no estate and the house, which they have a line of credit on still, should transfer to my father. They both owned the home.
Some of these credit cards have been around for a long time (70's, 80, 90's). Is my father liable for the cards we can prove were forged? Who has the onus of proving that my father never benefited or did benefit from the use of the card?
My father cannot afford any payments on these cards so we are basically stuck here in a waiting game with CC and collection agencies.
I have sent multiple letters to all over time asking for validation of debt and application and not all are responding in a timely manner if at all.
Suggestions on a course of action?

 

[tpajet]

The burden of proof is always on the prosecution end if it goes to court. It sounds like it hasn't gotten to that point, and that everyone is only dealing with the collectors right now.

However, your father is still going to have to deal with the liability for these debts. Your mother may have taken out the credits and added him without him knowing, he still would be the one who gets her estate, and her liabilities would have to come out of that. Although, if these accounts have been active for all these years, then they have to have been getting paid on time all these years, so the best bet is for your father to continue to pay the debts, if he can.

Bottom line is he is not going to be able to just get rid of the debt. The only time that proving he wasn't really part of the account would be if there was some criminal case resulting from this. But since he inherited her half of the estate, this has come along with it.

My question is how can you prove a forgery on an account that has been open for 20-30 years?

 

[teflon]

Thanks for commenting. First, NY is not a community property state. Therefore, the debt incurred by my mother is not inherited by my father. Again, my mother had no estate. True my father and her owned the house but that transfers over to him via rights of survivorship, true? The home was joint tenants not joint tenants in common.

In regards to the estate, my mother had no IRA's, stocks, anything that is considered for an estate. If they want her shoes and clothes they can come get those I guess.

My father cannot afford the debts and he will never ever pay them off based on the balances due. So that is not an option. Again though, these are her debts not his. His name was illegally added to the accounts.

So the question still remains, can you prove forgery after 20-30 years? Documentation wise we can as we have proof. Legally though, does it have legs to stand on?

 

[tpajet]

There's going to be two different ways these debts will go. First, the creditors may be willing to accept the documentation you have proving the accounts were not really his and write them off since there is nothing they can really collect from her estate. Keep in mind the term estate refers to anything she has, even if it's the value of the clothes and shoes, but those are not really going to get counted.

The other way for things to go is for a creditor to say your full of it with the forgery documentation. So those would probably end up in court, in which case you simply show the judge the documentation you have, and they should rule in your father's favor.

The problem is some of this may end up on his credit report, but again, with the proper proof it can be cleared up.

How far each of the debts go in the above list is up to each creditor and how much they are willing to accept what you have. I think in the end you father will be fine, but in the mean time it could still be a mess ahead.

One thing I would look into is contacting a lawyer and see if he can sue her estate, not for money, but rather to have a court order that the debts be cleared from his name. It's kind of an out there idea, but it might be well worth looking into.

 

[teflon]

Thanks for the feedback. We have a lawyer and I am following his direction whenever needed. Although, I like multiple opinions whenever I can get them.

 

[army judge]

Credit reports should matter very little to senior citizens. No credit card creep will sue an old man and take his home. Besides, in many jurisdictions, a home is protected from these kinds of actions.


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[jharris352]

You keep saying that your Mother has "no estate" the problem is that the house is in "her estate." True he becomes sole owner upon her death, but with the asset comes the liabilities. Some of the debts from the 70's and even the 80's if they were charge offs for that long are beyond their Statute of Limitations. I would expect that you will have some CC companies sue her estate and attempt to attach a lien to the house. As long as he does not have the home paid off (always a bad idea in my book) he will be ok. Let the liens stay their until his death and when the house is sold they will be paid off. I hope they have to wait a long time. I certainly don't wish any ill on your father with that statement. Good luck.

 

[mightymoose]

Were these credit cards actively used or receiving regular payment? Are they delinquent?
If these are delinquent debts without recent activity, the statute of limitations for collections may be well passed. These companies can't do much more than ask nicely for the money. They can only get a judgment if you fail to show in court and argue the statute of limitations for defense.
Do not offer to pay or make partial payments as that will restart the statute from 0.
Demand that the companies provide documentation that they legally own the debt and that they provide evidence showing the last date of activity on the accounts.
The statute of limitations in NY is 6 years... any account with last activity prior to 6 years ago you will be able to easily fight off in court. If these accounts are from 70's through 90's then you may well be in the clear.

 

[mightymoose]

Also... these accounts will not show up on your father's credit report unless there is new activity on them.
If they do show up, they will be easily fought off and removed.... but it will be up to you to check the report and stay on top of things.