For example if you owe money to a credit card you are making your paymantes on time and you get into and accident and the worst happens. What happens to that debt?
If you have no cosigner and no assets, they write it off. The estate would get a 1099-C for the cancelled debt, but the executors would explain to the IRS that the estate was insolvent.
If there is a cosigner, the lender asks them to pay.
If there are assets, the estate pays.
It goes with you, unless you you live in a community property state there is like 6-10 states then in that case your spouse may have to pay it.
But most credit card companies simply close your account as deceased. Trust me most companies don't get involved with estates!!
If you think about they can't send you to collections and if the balance is not paid is not like you still need credit?
In most jurisdictions, it would be charged to your estate (the value of what you own that can be sold off) and then discharged. In community property states (like Texas, where I live) the debts of one person are part of the community property and thus it becomes the debt of the other person.
Usually if someone in your family claims your assets after your death, they are also required to claim your debts.
If you have valuable assets, you should transfer them into third party ownership, like a holding company you own, or into a trust or foundation.
This will allow your family to recover the assets which you don't legally own, and forgo the debts.
Unfortunately, the debt does not DIE with you. All debt will become the obligation of your estate; ie the person who in the beneficiary of your life insurance, etc.
It would be passed along to whomever inherits your estate