Q: My husband passed away in May, owing $10,000 on a credit card in his name and $4,200 on a card held in both of our names. Am I personally liable for these debts? — Colleen Edwards, Wai'anae

A: You can't inherit your spouse's credit card charges but you are liable for any debts incurred on shared cards.

Hawai'i consumers are responsible for their spouse's credit card debt if they are an authorized user of the card or if the couple's combined incomes were used to qualify for the card, according to Wendy Burkholder, executive director of Consumer Credit Counseling Service of Hawaii.

That means you're not legally liable for the $10,000 debt on your husband's credit card and you are responsible for the $4,200 debt owed on the joint credit card, even if none of the charges were made by you.

Usually when a person dies with large debts, credit card companies will first try to collect from the deceased's estate while it's going through the probate process.

If there is not enough cash in the estate, the court-appointed administrator could order the estate to sell off assets, leaving less money for the heirs.

Ryker Wada, consumer unit supervisor for the Legal Aid Society of Hawai'i, warned that some credit companies are taking creative approaches to get family members to pay off a relative's credit card debts, especially in cases involving large debts.

Some Mainland issuers say in their credit applications that the laws of their state — and not Hawai'i's laws — will dictate the collection terms on the card, Wada said.

In Texas, for instance, a person is liable for their deceased spouse's credit card charges even if the cards were in the spouse's name alone.

These companies may not only press the spouse for repayment, they may require you to go to binding arbitration if you decided to contest the charges, Wada said.

Wada cited one case where a Legal Aid client was issued notices by a credit company to pay off credit card debts incurred by his deceased mother. Wada said the client lived in his mother's house but kept his finances and credit cards separate from his mother's.

Wada said the son made several monthly payments before Legal Aid stepped in and convinced the company that he wasn't liable for his mother's debt.

"If it is a $100,000 credit case, they'll probably fight it," Wada said.

"But if it's a $2,000 debt, they're probably going to write it off because it doesn't make sense to hire an attorney for that low amount."

Burkholder of Consumer Credit Counseling advises that couples be completely open with each other about their finances and credit cards.

"If your partner handles the money in ways you are not comfortable with, it would be a good idea to keep things separate," Burkholder said.

Wada recommends that consumers keep all of their credit card records on hand and contact the card issuers in case one of the partners dies. Some credit card companies will require you to send them a copy of a death certificate or other form of proof in event of death.

If the card companies continue to pressure you, Wada recommends that you contact an attorney, the Legal Aid Society or Consumer Credit Counseling Service of Hawaii.

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