Death & Creation Finance

Tigers_Eyes

Hi,
Firstly i appologise if I have posted this in the wrong section.

My mother in law died in January and she had purchased a suite from Cousins furniture store a couple of years ago, The finance was taken out with Creation Finance on interest free credit.
There was £300 left to pay.

Her bank account was closed down and all direct debits were stopped.

My father in law has sent them her death certificate but creation keep writing to him now demanding the money from her estate.

My father in law is on pension credit and did not know that she had taken out credit at the furniture store. There is no estate either.

Is there anything that he/we can do so he does not have to pay the £300?

Thank you.

isplumm

Tigers_Eyes wrote: »

Hi,
y.

Her bank account was closed down and all direct debits were stopped.

My father in law has sent them her death certificate but creation keep writing to him now demanding the money from her estate.

My father in law is on pension credit and did not know that she had taken out credit at the furniture store. There is no estate either.

Is there anything that he/we can do so he does not have to pay the £300?




Thank you.

Was there anything like probate - but if it was not a joint debt ... then I don't see how he owes anything?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093

Mark

Flyboy152

Tigers_Eyes wrote: »

Hi,
Firstly i appologise if I have posted this in the wrong section.

My mother in law died in January and she had purchased a suite from Cousins furniture store a couple of years ago, The finance was taken out with Creation Finance on interest free credit.
There was £300 left to pay.

Her bank account was closed down and all direct debits were stopped.

My father in law has sent them her death certificate but creation keep writing to him now demanding the money from her estate.

My father in law is on pension credit and did not know that she had taken out credit at the furniture store. There is no estate either.

Is there anything that he/we can do so he does not have to pay the £300?

Thank you.

isplumm wrote: »

Was there anything like probate - but if it was not a joint debt ... then I don't see how he owes anything?

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093

Mark

Except for the furniture.

If the furniture was purchased in her name, she owned it (or if it was bought on hire-purchase, it will be owned by the finance company) and it would form part of her estate. If there are any other debts or funeral expenses, then what is left from the value of her estate, is what the loan company can be paid.

No one dies without an estate, there is always something.

fluffnutter

Flyboy152 wrote: »

No one dies without an estate, there is always something.

Possibly. But it might well be less than the debts!

Who sorted out probate when your MIL died, Tigers Eyes?

Apples2

Firstly, congratulations - some people have all the luck

I would guess the furniture company would come and take the furniture away, it hasn't been paid for after all.

Aside from that, a good digging in of heels is required whilst they try their luck at getting the cost of the furniture from someone with zero connection to the agreement.

halibut2209

Apples2 wrote: »

Firstly, congratulations - some people have all the luck

Wow. Seriously??

Hawkeye4aneye

Apples2 wrote: »

Firstly, congratulations - some people have all the luck

I would guess the furniture company would come and take the furniture away, it hasn't been paid for after all.

Aside from that, a good digging in of heels is required whilst they try their luck at getting the cost of the furniture from someone with zero connection to the agreement.

The furniture company no longer own the suite as they would have been paid for it by the Finance Company at the time the Credit agreement was processed. The money owed is to the Finance Company and the Credit agreement would state the details of this and your M-I-L would have signed this which normally in the terms and conditions would have covered the possibility of her dying. You therefore really need to see a copy of the terms and conditions.
How far the Finance Company take it is another matter as I am sure they will not want to take the suite back as its "re-sell" value will not be anything near £300.

You mention she had a sole bank account, what was the balance of this as this would have been an asset of her estate. The Finance Company will want to know this as they will say that they have a claim on these monies and if they were paid to your F-I-L by the bank then if they take it to Court the Court would probably rule that if there were no other debts this money should be used to pay the debt. Were there any joint bank accounts? If so then the Finance Company will probably want half of these balances included in any calculation of M-I-L's assets at death as well even though they pass by survivorship to your F-I-L.

Norfolk_Jim

Tigers_Eyes wrote: »

Hi,
Firstly i appologise if I have posted this in the wrong section.

My mother in law died in January and she had purchased a suite from Cousins furniture store a couple of years ago, The finance was taken out with Creation Finance on interest free credit.
There was £300 left to pay.

Her bank account was closed down and all direct debits were stopped.

My father in law has sent them her death certificate but creation keep writing to him now demanding the money from her estate.

My father in law is on pension credit and did not know that she had taken out credit at the furniture store. There is no estate either.

Is there anything that he/we can do so he does not have to pay the £300?

Thank you.

When my FIL died and left MIL in a similar situation I was able to get some very helpful information here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013093
FIL owed a lot of money but the law allowed me to use what little he had for his funeral (all of his life insurance) and inform all his creditors that there was insufficient in his estate to offer them anything - they just had to accept it. You'll find the law lays out what can be done in this situation. It does not sound to me like your FIL owes anything. Check out the webn site - its a government one so wont try and sell you anything.
You might also want to view this page http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/Preparation/DG_10029468