What do banks do if someone that owes them £15k dies?

nrushforth

Following on from the original question about debt after death.

My Father died about a month ago but had an unsecured personal loan for £5000 solely in his name, with no payment protection

He had virtually no savings (couple of hundred pounds), therefore the funeral costs were paid by his children (myself and brothers).

The only other asset he had was his house, which was left to my stepmother in his will.

What will happen to the outstanding debt left on the loan (roughly £2500). Will it be written off or can the bank enforce it be paid.

Any help appreciated.

Bossyboots

This is something only the bank can answer. The house forms part of your father's estate and therefore there is an asset against which the loan can be realised. How the bank want to deal with this will be up to them. They could ask for the house to be sold (I doubt that with it being a comparatively small amount and still a spouse's home) or place a restriction on the property preventing it being sold at a future date without their permission at which time they will want paying back. They can also choose whether to apply interest to the loan in the intervening years.