Instead the obligation transfers from you to your estate when a person dies their estate is born that estate will have someone known as the executor or administrator who will be designated by the will and affirmed by a court to handle all financial issues of the deceased including their debts. Heres where that money goes after you go by geoff williams contributor dec 15 2015 by geoff williams contributor dec 15 2015 at 944 am more what happens to your debt after you die more if you dont pay your loved ones debts you could be haunted by debt collectors getty images thankfully you cant take it with you your debt that is when you depart this world your debt . In the case of credit cards a deceased cardholders debt becomes the responsibility of their estate and interest doesnt stop accumulating immediately if the person who died has a living. The executor will be in charge of paying of the deceaseds debts including car loans from the proceeds of the estate