Most of us don’t really like thinking about what happens when we’re gone.
And if we do, it’s usually about who gets the cottage, the family heirlooms, or maybe that fancy armoire.
But what about debts?
A lot of people assume their debts (or any their parents owe) will vanish in a cloud of smoke the moment they cross into the hereafter.
Sadly, that’s not how it works.
Do Debts Disappear When You Die?
In Canada, debts don’t magically evaporate when someone passes away. They become the responsibility of the estate — basically, everything of value the person owned.
Before anyone inherits, the estate must pay outstanding debts using the money and assets left behind.
If there isn’t enough to cover everything, creditors may get only a portion of what’s owed, and heirs might receive less (or nothing at all).
Do Family Members Inherit Debt?
This is the BIG worry for many people, especially adult children looking after aging parents.
The short answer: no, you generally don’t inherit your parents’ debts.
Unless you co-signed a loan or are a joint account holder, you won’t be personally responsible for what they owed.
Your inheritance may shrink if the estate needs to settle debts, but you won’t be stuck writing personal cheques to creditors.
Who Gets Paid First?
Not all debts are treated equally. In Canada, there’s a legal order of who gets paid before anyone else:
- Secured debts like mortgages come first
- Government obligations such as taxes are next in line
- Other creditors — from credit card companies to utility providers — follow after that
If the estate runs out of money before everyone gets paid, lower-priority creditors can be left with nothing.
Why It’s Complicated
Here’s where things get tricky: estates follow a strict process, and creditors have to act quickly and correctly to make a claim.
If they miss deadlines or file improperly, they can easily end up at the bottom of the pile — and often never recover what’s owed.
That’s why estate collections are considered one of the most complex areas in the industry. It’s also why creditors, from small businesses to large banks, rely on professionals to handle it.
What About Probate?
You’ve probably heard the word “probate” tossed around when talking about wills and estates. Probate is the legal process of confirming that a will is valid and that the executor (the person chosen to settle the estate) has the authority to act.
Why does this matter for debts? Because in most provinces, creditors can’t be paid until the estate has gone through probate.
It’s the court’s way of making sure everything is above board — that the will is legitimate, debts are properly accounted for, and heirs get what they’re entitled to after obligations are settled.
Here’s the wrinkle: the rules vary across Canada. In some provinces, the probate process is fairly straightforward. In others, it’s lengthier, more expensive, and comes with unique paperwork. That means timelines and requirements for debt repayment can look different depending on where the deceased lived.
For creditors, it’s critical to file correctly within those provincial rules, or they risk losing out entirely. For families, understanding probate helps explain why estate settlement can sometimes feel slow and complicated.
Why Probate Takes Time
It’s easy to get impatient when an estate seems tied up in paperwork. But there are real reasons probate can move slowly:
- Court review: A judge (or registrar) has to confirm the will is valid.
- Notification periods: Creditors and heirs must be given a chance to come forward.
- Complex estates: Multiple properties, investments, or businesses can mean more documentation.
- Provincial differences: Each province has its own forms, fees, and timelines.
Probate isn’t just “red tape.” It’s a safeguard to make sure debts are fairly paid and the remaining assets are distributed properly.
A Note on Québec
Québec handles estates a little differently than the rest of Canada. There isn’t a formal “probate” process under the Civil Code, but wills still need to be confirmed depending on how they were made:
- Notarial wills (signed in front of a notary and witnesses) are valid immediately and don’t need probate.
- Holograph wills (handwritten and signed by the deceased) must be verified by a court or notary before they can be used.
- Wills made before witnesses also need to be verified after death.
The key takeaway: in Québec, notarial wills skip the extra steps, while other types require a verification process that’s a bit like probate in the rest of Canada.
MetCredit’s Role
At MetCredit, we’ve built a specialized department focused entirely on estate and deceased debt collection. We’ve seen first-hand for decades how sensitive and complex this process can be.
Our estate collections team works directly with executors, estate attorneys, and public trustees to ensure things are handled respectfully, and with legal precision. We also use advanced tools like NoticeConnect, and Estateably which instantly alert us when an estate is filed — meaning we can act swiftly to protect our clients’ interests.
Who We Help
MetCredit collects estate debts on behalf of:
- Landlords
- Small businesses
- Retail chain stores
- Telecommunications companies
- Major financial institutions
In every case, our role is to make sure creditors are treated fairly in a process that can easily go sideways without the right knowledge and systems.
The Takeaway
Debts don’t disappear when someone dies — they have an afterlife of their own, through our estates.
The good news: surviving family members aren’t left personally responsible for those undead affairs.
But for creditors, the process is complex, time-sensitive, and unforgiving.
That’s where MetCredit comes in. With decades of experience in estate collections across Canada, we know how to manage the process with compassion, accuracy, and speed.
If you’re working on collecting debt from one estate or many, you’ve found your support team. Visit our Estate Debt Collections page, or reach out to learn more.
