debt after death

downshifter98

Hi

I hope I'm posting this in the right forum!

Long story short; mother-in-law is very ill and we have been warned that her condition is terminal. Her only income is state related (pension credit, dla etc) and her money assets are few (3 or 4 hundred at any one time). We have recently discovered that she has racked up 'catalogue' debts of about £1700 (no idea what on and nothing to show for it!) and now we are worrying that, as well as finding funding for her eventual funeral, we will have these debts to deal with (the monthly payments she is making barely cover the interest!). Could anyone advise what will happen to these debts and how we should deal with the 'companies' involved.

Many thanks

Downshifter98

tigtag02

Her debts will die with her unless there is an estate to pay them from.

I'm sorry for your MIL's diagnosis, please spend as mucg quality time with her whilst you can.

My thoughts are with you
xx

simpywimpy

The debts will die with her and would only be payable if she had an estate including property. Judging by the little she has and the cost of a funeral, the catalogue company should write it off.

Best wishes with your relative in the meantime though. x

skylight

All debts are payable from her estate - if there is one. If not, the debts will die with her and you or other relatives, are not liable at all. However, and its not nice, but some creditors will use the time of grief to convince you otherwise. Should this happen, come back here or contact the CAB.

Take care
x

OliveOyl_2

I'm sorry to hear that at a time when you need to be there for your MIL you have this worry. Hugs to you.

When a person dies, before any residue is dealt with the books are "balanced". If your MIL has any assets they will be sold or liquidated to pay off her debts. If there is any left over, it will go to her heirs. If it is negative, i.e. she owes more than she is worth, then these catalogue debts will be written off.

If anyone is dependent on her financially I think they are considered before the debts, but I'm not certain on that bit.

downshifter98

Hi all

Thank you so much for your kind words; her illness has been long lasting and we have been bracing ourself for things getting worse (as they now appear to be) but we had'nt considered the financial side of things until very recently (typical!) - At least its some small comfort that these debts won't be a massive problem for us - can't say I feel sorry for the 'catalogue' companies though; they have given an oap with very limited income/assets limits (believe it or not) of £1000 & £4000!!! We were gobsmacked! My Mil's estate (as previously stated) will be very small (we think that most of the catalogue spending was on other people - but thats another story), how will we 'prove' this to her creditors (or debtors - could never work that one out),

thanks again for kind words and advice.

downshifter98

GeorgeUK

It might be worth giving nationaldebtline a call to clarify what may or may not happen with the catalogues. From their factsheet it seems that goods may need to be returned, but if she gave them away, i guess they'll have ni choice but to write them off.
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=21_what_to_do_about_debt_when_someone_dies

Debt_Free_Chick

downshifter98 wrote: »

how will we 'prove' this to her creditors (or debtors - could never work that one out),

Whoever administers the estate should draw up simple accounts - assets on one side, costs of dealing with estate, including funeral - and debts, on the other side.

It's a simplified SOA, without the complication of "long term" budgeting.

Has she done a will? Even with nothing to bequeath, it's worth a thought.

I guess she doesn't own a property?

downshifter98

hi debt-free-chick

She lives in a small council flat and has no will. To be honest we are really not sure how her outstanding debt built up as she has very little to show for it; as previously stated most of it seems to have been on stuff for other people and certainly nothing of real value; it seems to have built up slowly but steadily and has no doubt been boosted by the 'typical' APR of 40 per cent they are charging her. Until now we really did'nt think a will was required but perhaps we should have her agree to a simple one,

Regards downshifter98