Credit cards and unsecured loans (KTA) are often chosen because the process is quick and the requirements are simple, even though the interest rates can be quite high—up to 4% per month. But many people ask: if the credit card holder or KTA debtor passes away, does the debt automatically disappear? Or is there another party that must repay it?
Debt Does Not Automatically Disappear When the Debtor Dies
Legally, debt does not just vanish when the debtor dies. According to Article 833 paragraph (1) of the Burgerlijk Wetboek (BW), heirs automatically inherit all assets, rights, and receivables from the deceased. This is reinforced by Article 1100 BW, which states that if heirs accept the inheritance, they are also responsible for paying the deceased’s debts in proportion to what they receive.
So, an inheritance doesn’t just contain assets, but also liabilities. This is also emphasized by J. Satrio in his book Hukum Waris (Inheritance Law), which states that an inheritance is a complete transfer of a package containing both assets and debt obligations from the deceased to the heirs.
What Should Heirs Do?
If someone passes away while still having credit card or KTA bills, the heirs must immediately notify the bank. This process cannot be done carelessly. The bank will only follow up if the reporting party can prove that they are legitimate heirs.
To prove this status, certain documents are required. For instance, a certificate of inheritance from the court, or from the village head and sub-district head for native Indonesian citizens. For citizens of Chinese descent, this document is usually made by a notary. Meanwhile, for Muslims, a determination from the Religious Court can be used. If there is a dispute among the heirs, the court will decide who the legitimate heirs are.
Besides proof of heir status, the bank will also require official documents regarding the cardholder’s death. This can be a death certificate from the Civil Registry Office, a letter from a hospital, or a death certificate legalized by the Indonesian Embassy if the person passed away abroad. If no official proof is available yet, the court can issue a legal declaration that someone is considered deceased.
Are Heirs Obligated to Pay the Debt with Personal Funds?
Even though heirs inherit the debt, they are not required to pay it using personal assets. This is in accordance with Article 1045 BW, which states that no one is obliged to accept an inheritance. This means, if the heirs feel the debt burden is too heavy, they have the right to refuse the inheritance.
The option to accept or reject an inheritance is explained in Article 1023 BW. Heirs have the right to consider their options before making a decision. They can fully accept the inheritance, accept it under inventory conditions (beneficiair), or reject it entirely. This decision must be officially submitted to the court. If the inheritance is rejected, the heir is considered to have never had any rights or obligations related to it, including its debts. Nevertheless, the rejection must still be communicated to the bank, and this will usually be followed by discussions to seek a solution. If no agreement is reached, legal proceedings may follow.
What If the Inheritance Is Accepted?
If the heir decides to accept the inheritance, then they are responsible for all obligations of the deceased, including credit card or loan debt. If they do not repay the debt, the bank or creditor may issue a warning letter or even take the case to court.
This has happened, for instance in case No. 3580/Pdt.G/2018/PA.Sby, where the Surabaya Religious Court ruled that the heir of a debtor must repay a debt of Rp112,927,805 to PT. Bank Pembiayaan Rakyat Syariah Bakti Makmur Indah.
Conclusion
Heirs who accept the inheritance are responsible for the assets as well as the debts of the deceased according to the rules in BW. However, if the inheritance is rejected through an official court procedure, they no longer have an obligation to pay the debt. Even so, the rejection is not enough just legally—the bank must still be informed and it may involve negotiation or further legal proceedings.