We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Does debt die with you?

mando_2
Posts: 55 Forumite
Probably a silly question, but does debt die with you?
If say I had no house as I rented, but had over £10,000 in debts and the only asset I had was the car on finance. Would the debts die with me, or would they be passed on to my next of kin?
Just thought I should add, I'm asking because I say they don't die and partner says they do. I think you can inherit money, so why not debt?
If say I had no house as I rented, but had over £10,000 in debts and the only asset I had was the car on finance. Would the debts die with me, or would they be passed on to my next of kin?
Just thought I should add, I'm asking because I say they don't die and partner says they do. I think you can inherit money, so why not debt?
0
Comments
-
Good news: your next of kin can't inherit your debts!
If you die owing more than you have, then they are not responsible to pay over the balance.
Mind you, every penny you DO leave has to be used to pay off your debts, but the worst possible scenario is that your relations get nothing not a minus sum.0 -
Unless the debts are in joint names (like a mortgage could be or a joint tenancy agreement) then they do!0
-
You may find these links useful:
http://www.abacusfinance.co.uk/debt-death.htm
http://www.inlandrevenue.gov.uk/manuals/tsemmanual/tsem7356.htm
http://www.nationaldebtline.co.uk/england_factsheets/factsheet_21.php3
HTH~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PMS Pot: £57.53 Pigsback Pot: £23.00
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 -
Cheers for the articles. That's put my mind at rest.
We aren't in debt, we managed to crawl out of it a few years ago and refuse to go down that path again. However, I do worry that my parent's debt will haunt me, at least now I can stop worrying. Ta.0 -
Hope ya not thinking of bumping him off now LOL,Nobody can make you feel inferior, without your permission
Love doesn't make the world go round, it's what makes the ride worthwhile
ya still freezing
0 -
This might be an inappropriate place to mention my personal experience, but my fiance and I have both insured our own lives in order that, should either of us die within the life of his mortgage, that mortgage and any other debt can be paid off by the life insurance payout. It's really to protect me, as I could not afford to keep the house if he carked it tomorrow. But that's more about the house, rather than the debt.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.3K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.4K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards