Slightly Morbid but was curious...

lazy&indebt

I have just been filling in my application form to join by company pension scheme and there was an expression of wish form for you to nominate someone to receive a payout in the event of your death whilst working at the company and I was thinking, if I died tomorrow (I'm only 22 but anything can happen!) what would happen to my debts? I'm not married and live by myself so who would they be passed on to? My parents?

MrsTinks

If you have payment protection on them then it's entirely possible that these would cover a full and final payment of your debts.
Another alternative is that the executor of your will/estate would need to sell off your possesions to pay of any creditors before the rest is split amongst the benefactors of your will. However if the debt is in your name only and there are no guarantors then no-one else can be made liable for the debts if they are unsecured

K9cuddles

My employee will pay out x4 my salary which would clear all my debt, worth finding out if your employee has the same kind of scheme?

steve_cov

K9cuddles wrote:

My employee will pay out x4 my salary which would clear all my debt, worth finding out if your employee has the same kind of scheme?

Ooh, generous: mine pays only twice my salary. But at least it'll pay off the mortgage.

lazy&indebt

I think it looks as though my company would only pay out the amount I have paid into my pension at that time. I have no payment protection plan and don't really have any assets apart from my car (which is worth less that I owe) and stuff like my TV. I n short I think I owe out more than I own. Was wondering mainly because my Dad is morning to South Africa this yeat which leaves my mom in the country and I'd hate the though of all my debts being passed to her!

CLAPTON

your mom wont be left with any of your debt unless she had been a guarentor of a debt.

if your assetts are insufficient to pay your creditors then the debts just die

lazy&indebt

Thank you, Clapton! That's one less thing to worry about. I didn't think it would but wanted to check anyway

file_wizzard

Any unsecured borrowing which was taken out in your name only would be effectively written off upon your death.

A Creditor could technically apply to your estate for repayment of unsecured borrowing, however this is unlikely, and any secured borrowing would take priority.

The only items that others could be pursued for are any borrowing in joint names, or where a guarantor has been provided

GreyPilgrim

steve_cov wrote:

Ooh, generous: mine pays only twice my salary. But at least it'll pay off the mortgage.

Mine pays 4 X salary (which I only found out recently...nice surprise). Plus I have a life insurance policy outisde of work

Depressing to know I would be a rich man if I popped my clogs...

Thriftylady

I'd say that most people who are in employment and have life assurance too are likely to be worth more dead than alive !! I always remind the OH of this when he's being annoying.....:D

Donedoingdebt

Thriftylady wrote:

I'd say that most people who are in employment and have life assurance too are likely to be worth more dead than alive !! I always remind the OH of this when he's being annoying.....:D

Are you my OH?