FamiliaLista › Guides › Debts and bills after a death in Texas: who pays and what to do

By Frank Flores, founder of FamiliaLista · Updated November 3, 2026

Debts and bills after a death in Texas: who pays and what to do

Debts don't disappear when someone dies, but they're paid from what the person left, called the estate. Family members usually don't have to pay from their own money. The exceptions are a co-signer, a joint credit card holder and, in some cases, a spouse. Listing the debts now makes this much easier later.

Who pays the debts?

The estate pays them, through the executor or administrator. If the estate doesn't have enough, the debt usually goes unpaid. You may be responsible yourself if you:

co-signed the loan, such as a car loan;
are a joint holder on a credit card (an authorized user is different);
are the spouse in a community property state like Texas, where you may share responsibility for certain debts from the marriage, or in a state that makes spouses pay certain costs like health care.

An executor isn't personally responsible for the debts of the person who died. Sources: FTC, debts and deceased relatives, CFPB, am I responsible for my spouse's debts after they die?, TexasLawHelp, probate court basics.

What does Texas protect for the family?

Texas lets a surviving spouse or minor children keep living in the family home, and the homestead is protected from general creditors. Some personal property can also be set aside for the family. These protections cover unsecured debts like credit cards and medical bills. A loan backed by the property, like a mortgage or a car loan, still has to be paid to avoid foreclosure or repossession. Source: Texas State Law Library, family protections in probate.

How do you list every debt now?

Your credit reports. Get them free every week from Equifax, Experian and TransUnion at AnnualCreditReport.com or 1-877-322-8228. It's the only authorized site for free reports.
Monthly statements. Mortgage, car, cards, medical bills, store cards and personal loans.
For each debt, write the lender, the account number's last 4 digits, who else signed, and whether it has insurance.

Source: FTC, free credit reports.

What happens to the mortgage?

Keep paying it. Federal law says a lender can't call the loan due just because the home passed to a relative after the borrower's death, or because the spouse or children became owners. That applies to homes with fewer than five units. Source: 12 U.S.C. §1701j-3 (Garn-St Germain Act).

An heir who becomes an owner is called a "successor in interest." Write to the mortgage servicer with the borrower's name and the loan information. The servicer must tell you in writing which documents it needs to confirm you. Once confirmed, you're treated as a borrower under the federal servicing rules, so you can get information about the loan and ask for help if payments are hard. Sources: 12 CFR §1024.31, successor in interest, 12 CFR §1024.36, requests for information, 12 CFR §1024.30, scope.

Does the loan have credit life insurance?

Credit life insurance is optional coverage that may pay off a loan if the borrower dies before it's paid. When it's bought, the cost may be added to the loan. Look for "credit life," "credit insurance" or "debt protection" on the loan papers and statements. If you find it, call the lender and ask how to file the claim. Source: OCC BankCustomer.gov, what is credit life insurance?.

What about automatic payments?

Find them on the bank and card statements. Keep the ones that protect the family, like the mortgage, insurance and utilities, and stop the rest, like subscriptions. To stop one, call the company, then tell the bank, and follow up both in writing. Some banks suggest a stop payment order, which may have a fee. Stopping a payment doesn't cancel what's owed, so cancel the service itself too. Source: CFPB, how to stop automatic payments.

What can debt collectors do?

They can talk about the debt with the spouse, the executor or representative, or a confirmed successor in interest on a home.
They may contact other relatives once to find the representative, without discussing the debt.
They can't say or hint that you must pay with your own money.
Ask for the details in writing (a validation notice), and dispute in writing within 30 days if something looks wrong.
To stop the contact, send a letter or email. The debt can still be claimed against the estate.

Sources: FTC, debts and deceased relatives, CFPB, am I responsible for my spouse's debts after they die?.

In what order does the estate pay?

Texas sets the order. First come funeral costs and the costs of the last illness, up to $15,000 each. Next come the costs of handling the estate, then debts backed by property, like a mortgage, paid from that property. After those come child support and then taxes, before other debts. See what an executor does in Texas. Source: Tex. Estates Code ch. 355.

Checklist

[ ] Your free credit reports from all three bureaus.
[ ] A list of each debt, the lender and who co-signed.
[ ] Which loans have credit life insurance.
[ ] Your automatic payments, and which ones to keep.
[ ] The mortgage servicer's name and phone number.

A short list of debts and autopays is one of the most useful things you can leave. A life operations manual keeps it with everything else.

Your life's operations manual, ready in an afternoon

FamiliaLista stores your instructions, messages, and access — and delivers them to your people only if you're ever gone or unreachable. By message and email, in English and Spanish.

Start free →

Familia plan from $79/year · Your family, ready. No matter what.

Want this talk for your church, school or team?

Frank Flores gives free family-readiness workshops, in English or Spanish.

Book a free workshop →

Frequently asked questions

Do I have to pay my parent's credit card debt?

Usually not from your own money. The estate pays it. You may owe it if you co-signed or were a joint card holder, not just an authorized user.

Can the bank take the house if my spouse dies?

Not just because of the death. Federal law bars lenders from calling the loan due when the home passes to a spouse, child or relative after a death. Keep making the payments.

Can a debt collector call me about my late mother's debts?

They can contact the executor or representative, and may contact relatives once to find that person. They cannot say or hint that you must pay from your own money.

Is this legal or financial advice?

No. It is general information from the FTC, CFPB and Texas law. A lawyer or legal aid can help with your situation.

Sources

General information, not legal or financial advice. Rules change; check the official sources above or talk to a licensed professional about your situation.