Spouses Use Of Credit Card After Spouse Died

[FEATHER]

My jurisdiction is: CALIFORNIA, USA

A Wife's Husband Died Four Years. She Was A Homemaker, Maxed Out The Joint Credit Cards While Jobless, Then, Out Of Desperation, Used Her Deceased Husband's Credit Card. She Paid The Monthly Statements For This Card For Four Years Until She Could No Longer Afford To Make The Payments. She Has Missed About 4 Payments.
Now The Credit Card Co. Is Calling Her Regarding Fraud On The Card And Said That She Is The Main Suspect.
Since The Card Was Used After His Death, Is She Now Responsible For The Debt? Can She Be Charged With Fraud, Even If She Was Trying To Make The Payments For Four Years? If She Files For Bankruptcy, Can The Credit Card Charges Be Admissible In Bankruptcy? The Debt Is About $20,000 On This Credit Card That She Charged After His Death.

 

[Michael Wechsler]

This is a complex problem. The woman is responsible for the debt she accumulated, that we know for sure. The payments weren't made and it was discovered that she didn't have authorization to use the cards. Sure we can be sympathetic and are sorry for her loss. But does that give her the right to borrow money without honesty and not pay it back? That is the issue at hand. If she files for bankruptcy it might not make a difference because my understanding is that bankruptcy will not discharge fraud - which is what the creditor is probably claiming happened.

 

[FEATHER]

Thank You Law Professor,

Question: If She Contacted The Credit Card Co. And Arranged A Payment Plan With Them Until She Started The Bankruptcy Process, Could This, At Least, Cancel The Fraud Charge? Possibly Continue With Bankruptcy As Planned?

 

[Michael Wechsler]

No, paying back the amount owed doesn't change the fact that the crime was committed. However, it may go a long way to dropping the charge or reducing it.