When a loved one passes away, grieving families are often faced with making difficult funeral arrangements and paying unexpected expenses during an already stressful time If funds are limited, you may be wondering – what happens if you can’t pay the funeral bill?
Unfortunately, not paying your funeral bill can lead to serious repercussions. Being informed on the consequences is key to avoiding further hardship for your family.
You Are Legally Responsible for Funeral Costs
The first thing to understand is that whoever signs the funeral home’s contract is legally responsible for paying the total costs. The average funeral costs $7,000 to $10,000 in the United States. This is generally paid by the deceased’s estate or assets.
However, if there is no money available in the estate, the responsibility falls to the person who signed the contract – usually the next of kin or executor. You cannot be forced to pay funeral expenses, but you’ve agreed to the charges by signing.
The Funeral Will Not Proceed
If you sign a contract but cannot pay the funeral bill the services will not go forward as planned. The funeral home requires payment upfront before rendering services.
They will not release the body or proceed with burial or cremation arrangements until the balance is paid in full. Your loved one’s remains will be kept in cold storage at the funeral home in the meantime. Expect to be charged a daily storage fee.
Your Credit Score Will Suffer
If you do not pay the bill by the agreed upon date the funeral home can take legal action and sue you to recoup costs. If they win a judgement against you in court your credit score will take a major hit.
A funeral bill judgement can stay on your credit history for up to seven years. This can negatively impact your ability to qualify for loans, credit cards, and more due to a poor credit score.
Wage Garnishment Is Possible
To satisfy the unpaid funeral judgement, the court can order your wages to be garnished. This means a percentage of your paycheck will be taken to pay off your debt to the funeral home.
Wage garnishment can make meeting your current living expenses very difficult when a portion of your income is redirected to the plaintiff.
A Lien Could Be Placed Against Your Assets
If wage garnishment still does not fully settle the debt, the funeral home can place a lien on your assets. Any property that you own, like your home or vehicles, could be lawfully seized and sold to cover your unpaid funeral costs.
It’s an extreme worst case scenario, but demonstrates how seriously overdue funeral bills are treated. Do your best to avoid liens being placed against your assets if possible.
Tips for Paying for a Funeral
If you’re worried about affording a funeral for your loved one, consider these options to avoid the penalties of an unpaid bill:
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Seek help from family and friends to contribute funds.
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Request the funeral home lower costs or change plans to a cremation.
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Take out a personal loan from a funeral-specific lender.
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Reduce services and buy funeral products directly online.
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Turn to community or religious groups for assistance.
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Set up an online fundraising campaign.
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Utilize life insurance or VA death benefits if available.
Work With the Funeral Home
Reputable funeral directors understand the financial hardships families can face. Talk to them openly about your situation – they may allow you to set up a reasonable payment plan or suggest ways to lower the costs.
Most will try to work with you, as legal action benefits no one. Be upfront about your timeline and ability to pay to avoid harsh consequences down the road.
Don’t Delay Difficult Conversations
Waiting to address financial concerns only causes greater stress and complications later. As soon as possible after your loss, gather details on the estate, assess funeral costs, and determine available assets.
Have honest discussions with family members about each person’s ability to contribute. Identify any shortfalls right away so there is time to strategize solutions.
Compare Your Funeral Options
If funds are extremely limited, be aware there are lower cost alternatives to a traditional funeral service. Direct cremation followed by a memorial service is much more affordable.
You can also opt to just have a direct cremation and forego services altogether. Shop prices between a few funeral homes to find the best value.
Seek Free Grief Counseling Assistance
Don’t neglect your emotional needs during this challenging time. Many hospice organizations and community support groups offer free bereavement counseling services. Confide in trusted friends or clergy as well.
While paying funeral expenses can certainly be a burden, especially when unexpected, know that you have options. Avoid assuming financial responsibility alone – lean on others for support and guidance. And most importantly, don’t let unpaid bills deter you from honoring your loved one in a meaningful way.
Options for funding a funeral
- Ask your loved one’s family and friends to help chip in.
- Their religious community may be generous, or consider setting up a GoFundMe.
- The funeral home may be willing to offer a payment plan, or to change the arrangements to reduce costs.
- Consider getting a funeral loan. These often have favorable terms, but high interest rates.
When someone close to you passes away, there are many financial responsibilities that suddenly must be handled on their behalf. Perhaps your loved one had an insurance policy or a prepaid plan set up to cover the costs of things like their funeral and burial. Otherwise, all of these immediate expenses will have to be paid out from their estate.
If you find yourself in the position of having to pay for a funeral for your loved one, you might not have the time to come up with a financial plan beforehand. You may assume that the estate will cover the costs of the funeral, but, in the urgency to plan it, you didn’t have time to check the total value of the estate’s assets. So you sign the funeral home’s bill, expecting that it would be paid for, and only later find out that the estate has no assets. Now what do you do?
First of all, know that this is not something anyone can blame you for. Dealing with the death of a loved one is an incredibly difficult and emotionally overwhelming thing, and all the bureaucratic processes that follow can be exhausting and confusing. In such situations, things don’t always run smoothly, especially in financial areas. It’s totally understandable—and you will be able to work it out.
If you signed paperwork with the funeral home, you are financially responsible for the funeral. The average funeral, including all related expenses, will cost between $6,000 and $10,000, with the average being around $7,000. This is a large financial burden to shoulder unexpectedly, but you do have options.
First of all, you may be able to speak with the funeral director to see if you can alter the preparations for the service to lower the cost. Many funeral homes will work with you to get the cost down as much as they can, while still offering a simple but elegant service.
Note that cremation is much less costly than a burial, and can lower the total price by several thousand dollars, as you will not have to factor in the purchasing of a casket or burial plot. If cremation is a possibility for you, your family, and your loved one, consider asking the funeral director about changing to this option.
A personal loan for the funeral
If you have a good credit score, you might consider taking out a personal loan to finance the funeral costs. Many traditional lenders will not usually loan money for a funeral, but there are institutions that offer or even specialize in funeral loans. Ask your funeral home if they have a funeral lender that they work with. These loans will often have favorable terms like no interest for several months or no-penalty early repayment, but like most personal loans, the interest rate can be high.
Avoid taking out an advance on your credit card to pay for the funeral. This can leave you in even more debt and paying massive interest.
Help With Burial Expenses When the Deceased Doesn’t Have Insurance : Insurance Tips & Answers
FAQ
What happens if you refuse to pay for your parents funeral?
Unless you personally agreed to engage their services, you owe them nothing. Otherwise, anything owed would come out of your mother’s estate. If there’s nothing in her estate, they will have to take the loss, not you.
What happens to a body if no one can pay for a funeral?
You can sign a form at the county coroner’s office and the state will bury or cremate the body for you if you can’t afford to do it yourself. This will be at no cost, but you won’t have any say in where or how.
Do people go into debt for funerals?
That’s a lot of money for the average American household, and unfortunately, funerals put many people in debt. Luckily, you have options when it comes to getting help for a funeral. Learn how to arrange to pay your funeral costs, so your loved ones don’t have to.
What happens if you don’t pay a funeral Bill?
Most funeral homes need some kind of payment up front, so if you don’t pay the funeral bill, you won’t be able to have services. This could mean that the funeral home won’t work with you, won’t take your business, or tells you to go to a different company.
What happens if a family can’t pay for a funeral?
If you can’t pay for a funeral, you’ll have to give the body to the coroner, who will decide what to do with it. If a family can’t pay for a funeral or have the body taken away, the person will probably be buried in an indigent cemetery. This is a place where people who can’t pay to be buried elsewhere are buried.
Who pays for a funeral service?
Legally, the person who signs the contract with the funeral home is legally obliged to pay the bill. Before you sign for the funeral service, it’s a good idea to make sure that the executor or estate will pay back the costs.
Should you pay back a funeral home?
In any case, you should always pay the funeral home back for any services you agreed to pay for. If you don’t pay the funeral home back, you might not be able to get their services again if you need them. If the owners of the funeral homes in the area know each other, you might not be able to do business with them.
Should I pay for a funeral home or cemetery?
Since the body can be prepared at home and buried on your own land, you don’t have to pay a funeral home or cemetery to do the work. It can help you heal to find your own meaningful way to say goodbye to a family member in your own space.
Who pays for a funeral if no person is appointed?
To pay for the funeral, the closest living relative must be named if no one else is chosen. How does the law work? The person who signs the contract with the funeral home has to pay the bill.
