If the debtor dies unexpectedly, there are usually three situations about debt settlement:
1. A citizen has the capacity for civil rights from birth to death, enjoys civil rights and assumes civil obligations according to law. As an independent civil subject, the borrower bears civil liability independently.
2. According to the Civil Law of People's Republic of China (PRC) and its judicial interpretation, the debts owed by husband and wife are paid off jointly by husband and wife.
3. Inheriting an estate shall pay off the taxes and debts that the decedent should pay according to law, and the payment of taxes and debts shall be limited to the actual value of the estate. The part exceeding the actual value of the estate shall be voluntarily repaid by the heir. If the heir renounces inheritance, he may not bear the taxes and debts that the decedent should pay according to law.
That is to say, after the borrower dies, if the husband and wife are in debt together, their spouses are obliged to repay; If there is no inheritance, it shall be repaid in the borrower's inheritance; If inheritance has occurred, the children will repay it within the scope of the inherited inheritance, and they will not have to bear it if they give up inheritance. Children have no obligation to repay, except voluntary repayment.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 161 The successor shall pay off the taxes and debts that the decedent should pay according to law within the limit of the actual value of the inheritance. The part exceeding the actual value of the estate shall be voluntarily repaid by the heir.
If the heir renounces inheritance, he may not be liable for paying off the taxes and debts that the decedent should pay according to law.
Article 162 The execution of a legacy shall not prevent the legator from paying off taxes and debts according to law.
Article 163 If there are both statutory inheritance and testamentary inheritance and bequest, the legal heir shall pay off the taxes and debts that the decedent should pay according to law; The part exceeding the actual value of the statutory estate shall be paid off by the testator and legatee in proportion to the income.