card holder dies with outstanding debt still owed

Chandlerblue

My father in law recently passed away suddenly and had a credit card with an outstanding balance of over £2k.

What happens now with regards to the debt and how it effects my mother in law?

RobertoMoir

Sorry to hear of your loss.

As I recall, the estate will need to settle all its outstanding debts and obligations before the remaining assets can be dispersed to beneficences. So your father-in-law's "estate" will have to pay this bill.

MrsTinks

As Robert has said - any outstanding debts will have to be settled through the estate - if there isn't enough money in the estate to settle the debts then the debt dies with the person owing the money - it can only be pursued from others if the debt was a joint debt in the first place.

Chandlerblue

MrsTine wrote: »

As Robert has said - any outstanding debts will have to be settled through the estate - if there isn't enough money in the estate to settle the debts then the debt dies with the person owing the money - it can only be pursued from others if the debt was a joint debt in the first place.

The card was in his name only and she does not have sufficient funds to settle.

She owns her home with no mortgage, can they put a lein on her home to get their money? This is whats worrying her.

anniecave

was the home joint or is it solely owned by her?

lisyloo

Sorrry to hear of your loss.

It might depend on how the house was held.
Was it "joint tenants" or "tenants in common".
One way it does not go through the estate and goes straight to the other party.

Did you FIL really have not have any assets to his name?
No jewelry, savings, car etc.
If the house passed straight to his wife and he had not a penny to his name then she is not liable for his debt.
However remember that any anything he had (like expensive watch, ring, cufflinks, car, bicycle, clothing etc.) are technically part of the estate, so it's not just money in savings accounts that we are talking about, it's anything he owns.

I am constantly suprised by the number of home owners who appear to have no possessions whatsoever.
I'm not saying it isn't true in your case, but it's unusal for people to own their own home and have no possessions or money whatsoever.

lisyloo

BTW - it's entirely possible that your MIL may get threatening letters from card conpanies.
They may well try to imply she is liable and use bullying tactics, which is pretty disgusting.

Make sure she gets proper advice before paying out.
If she has home insurance, she may have well have legal advice included and be able to talk to a solicitor for free, otherwise it would pay for her to get 30mins or 1 hour with a solicitor or get in contact with the CAB if she is really cash strapped.

But I think she will need to find out whether the house was held as "joint tenants" or "tenants in common".
Hopefully the house will pass to her directly and not throught the estate, but she does need to be able to rebuff his creditors with confident and this may ultimately mean paying a solicitor for 1 hour, to be confident of her legal situation, but check the home insurance first because they are qualified solicitors you get to speak to and not a call center.

Chandlerblue

Thanks for all your relies