If I never signed the promissory note, am I liable for my late spouse’s disaster recovery loan?

1. Detailed Answer

When someone borrows money, they enter into a contract by signing a promissory note. That signature creates a legal obligation to repay the loan. If you never signed the note, you did not promise to pay. Under North Carolina law, your late spouse’s creditors must look first to your spouse’s estate, not to you personally, to satisfy that obligation.

Here is how the rules apply:

• No signature, no personal obligation. A promissory note creates a binding contract only between the lender and the person who signs it. If you never signed, the lender cannot enforce repayment against you personally.
• Estate pays outstanding debt. After your spouse’s death, any creditors holding a valid claim—including the disaster recovery lender—can file a claim in the probate proceeding. North Carolina law lists the order in which debts get paid from estate assets. See N.C. Gen. Stat. § 28A-15-3 (priority of claims). View N.C.G.S. § 28A-15-3.
• No separate liability for surviving spouse. In North Carolina, we follow common-law contract principles. We do not impose automatic liability on the surviving spouse for the other spouse’s unsecured debts, such as a disaster recovery loan, unless the surviving spouse co-signed the note or otherwise agreed in writing to assume the debt.
• Exceptions are rare. A court could order you to pay if you received property from the estate that secures the debt. For example, if your spouse’s real estate carried a mortgage and you inherited that property free of other arrangements, you would take it subject to the mortgage. But you would not become personally liable beyond the value of the property.

2. Key Points to Remember

• Only signers of a promissory note are personally bound to repay it.
• Creditors must file proof of claim in probate to collect from your spouse’s estate.
• You do not owe the loan unless you co-signed or gave written assumption.
• Inherited secured property may carry the lien, but you won’t have extra personal liability.

Conclusion and Next Steps

Under North Carolina law, you are not personally responsible for your late spouse’s disaster recovery loan if you never signed the promissory note. The lender must look to your spouse’s estate to satisfy any unpaid balance. If you face questions about probate claims or estate administration, you do not have to navigate the process alone.

At Pierce Law Group, our attorneys handle probate matters every day. We provide straightforward advice and guide you through each step. To discuss your situation, please email us at intake@piercelaw.com or call us at (919) 341-7055. We stand ready to help you protect your interests and fulfill your loved one’s final wishes.