When a family member passes away, the last thing you want to worry about is creditors knocking on your door demanding that you pay your loved one's debts. Unfortunately, there's a lot of confusion over what happens to debts in the case of death. Usually the deceased person's estate is liable for the debts, not you. But there are a few exceptions. And even if you aren't responsible for the debts, if you are an heir there might not be anything left for you after creditors are paid out of the estate.