Disputing a deceased person's debt
Being chased over a loved one's debt is hard — you usually aren't personally liable, and you can dispute it.
This guide helps you
- Understand who is — and isn't — responsible for a deceased person's debt
- Know how debts are handled through an estate
- Learn how to dispute being personally chased
- Protect yourself from improper collection
- Find free legal and emotional support
8 min
What's happening
When someone dies, their debts are generally dealt with through their estate — not automatically by their relatives. In most cases family members are not personally liable for a deceased person's debts unless they signed as a co-borrower or guarantor. If a collector is chasing you personally, you can dispute that. This is a difficult time, and this is general information, not legal advice.
Your first steps
- Don't agree to pay personally for a debt that belongs to the estate.
- Identify your role — are you the executor, a co-borrower, or just a relative?
- Refer collectors to the estate and the executor where appropriate.
- Be gentle with yourself and lean on support services.
Step by step
- Confirm who is liable — usually the estate, unless you co-signed or guaranteed the debt.
- Tell the collector in writing if you're being chased personally and shouldn't be.
- Direct genuine claims to the estate so they can be assessed properly.
- Ask for proof of any debt and of any guarantee they say you gave.
- Escalate or get legal help if the collector keeps chasing you personally.
What evidence helps
Useful items include the death certificate, any grant of probate or letters of administration, and the original loan documents showing who was actually liable. If a collector claims you guaranteed a debt, ask for the signed guarantee. Look up terms like "executor" and "guarantor" at directory.merion.com.au/glossary.
Where to get free help
Free legal help is important when an estate is involved — contact a community legal centre or Legal Aid. The National Debt Helpline on 1800 007 007 can also help, and grief support is available if you need it. If a collector chases you improperly, you can complain and escalate to a free external dispute resolution scheme such as AFCA.
Key takeaways
- A deceased person's debts are usually handled by the estate, not relatives
- You're generally not personally liable unless you co-signed or guaranteed
- Direct genuine claims to the estate and dispute being chased personally
- Free legal help and grief support are available
Frequently asked questions
Do I have to pay my relative's debts?
Usually not, unless you were a co-borrower or guarantor. Debts are generally paid from the estate. Get free legal advice to confirm your position.
A collector is chasing me personally — is that allowed?
If you're not liable, you can dispute it in writing and direct them to the estate. Improper collection can be reported and escalated to AFCA.
Where can I get help during this time?
Free legal centres and the National Debt Helpline on 1800 007 007 can help with the debt; grief support services can help with the loss.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.