Co-borrowers are jointly and severally liable, so the bank may demand the full instalment from the survivor, and usually does. The deceased person’s share of the debt passes into the estate: heirs who accept it are liable alongside the surviving co-borrower. If the loan had life insurance, the insurer repays the part attributable to the deceased, sometimes the whole balance, according to the sum insured. After the inheritance proceedings the bank may offer an annex transferring the debt to one person, provided they have creditworthiness.
Topics
Put your most important documents in one secure place
Sejf Życia is an encrypted space for documents, access details and instructions for loved ones. Only you decide who gets access, and when.