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dying with a loan
I'm looking for advice regarding someone dying with a car loan. A relative has just passed away with a car loan (solely in her name). The loan is for 60 months and has been live for 21 months. The loan has an outstanding balance of c.£4000 and the car is worth £2800.
Does her husband have to pay the difference or can he just hand back the car as her estate was very small and doesn't come near the difference?
Does her husband have to pay the difference or can he just hand back the car as her estate was very small and doesn't come near the difference?
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Comments
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He can just hand back the car. Any debts that are solely in her name are covered by the estate, if there's not enough to cover them all then the debts are wiped off.Unless I say otherwise 'you' means the general you not you specifically.0
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(He can just hand back the car. Any debts that are solely in her name are covered by the estate, if there's not enough to cover them all then the debts are wiped off.)
Thanks for the advice, thats helpful0 -
A relative has just passed away with a car loan (solely in her name). The loan is for 60 months and has been live for 21 months. The loan has an outstanding balance of c.£4000 and the car is worth £2800.
Does her husband have to pay the difference
No - for normal loans they will just write the amount off so assuming that it was just a loan and not a hire purchase agreement then your relative's husband doesn't have to pay anything back and shouldn't have to give the car to anyone.0 -
No - for normal loans they will just write the amount off so assuming that it was just a loan and not a hire purchase agreement then your relative's husband doesn't have to pay anything back and shouldn't have to give the car to anyone.
Thats great advice. Thanks very much. I'll pass it on:j0 -
He can just hand back the car. Any debts that are solely in her name are covered by the estate, if there's not enough to cover them all then the debts are wiped off.
As far as I know Ames is right - the debts are wiped only if there's not enough money in the estate to cover them. They aren't automatically wiped when someone dies.0 -
I reckon they will just write it off (as the OP says there isn't enough money in the estate to cover it).
More info: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_100130930
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