I assume credit card firms have an organized and well used way of writing this off on their taxes.
The comedian Alonzo Bowden did a bit on this on last year’s Last Comic Standing. He joked about not needing life insurance to help his family pay for his debts because he was single so, as he said, “if I die owing money, I win.”
What stops people who have a terminal illness from going to town and buying everything they want, since the debt would be on the bank?
Holy Zombie threads, batman.
However, to answer your question, it’s mostly a matter of due diligence on the part of the lender. If you have a terminal disease, and yet still manage to present the image of a good credit risk (good debt-to-earnings ratio, good credit, etc.) then you will probably get some money from an FI. A lawyer-type might weigh in here and say that the FI would likely have grounds for crying fraud on the [estate of the] borrower, but they’re unlikely to recoup the loan in scenario you paint.
How is a bank to know if I’m dying of a terminal illness?
Generally they’ll ask you. If you lie, it’s fraud. If you refuse to answer, they may refuse the loan.
OB
Zombie!!! :eek: