Harry Gross: How to deal with creditors of dead spouse

Dear Harry: Nine months ago, my husband died with no will and no money. I discovered that he was in debt on his credit cards to the tune of more than $30,000. He was a longtime gambler. Credit- card banks started to call me almost before his funeral. Fortunately, every one of them admitted that I was not liable for his debts. (Thanks to your column, I knew to tell them that!) Some are still calling despite their admission, but I ignore them. I also found some business cards from a lawyer. I called him, and I found out that my husband filed a suit after a car accident about two years ago. Apparently, the lawyer was then engaged in final negotiations with an insurance company. Shortly afterward, I got a call from the lawyer that the case was settled, and that after fees and costs, I was going to get about $12,000. I know that this is not really my money, but I don't know which creditors to pay what amount.

What Harry says: If you used your own money for the funeral, get reimbursed for that. It seems that the safest way to go is to pay the creditors proportionately. Determine what percentage of the remaining money is owed to each and use that as a basis for payment. As a matter of "wearing a belt and suspenders," it is also a good idea to get each of the creditors to sign a release of the debt in exchange for the promised payment before you send the check. I hope you are able to manage on your own.

Write Harry Gross c/o the Daily News, 400 N. Broad St., Philadelphia, PA 19130. Harry urges all his readers to give blood - contact the American Red Cross at 800-Red Cross.