Loan Advice

brynthe_blade

My dad died on Sunday and although he was very good at having financial details clear - what goes out and in, when etc, one thing I am not sure about.
He had a small loan of about £3000 in his name. It wasn't secures against the property and my mum's name's not on it.
She will be struggling financially as she'll only get half his pension.
Is she liable for the loan repayments or will Santander write it off?
She doesn't want to be pursued for it but I don't think she is liable. I need to know before I phone them up as they may not be totally honest about it.
The same goes for his credit card, which is in his name solely.
Thanks for any help.

immoral_angeluk

Any debts will be repaid out of the estate after any funeral costs are paid. If there is no estate then Santander will have to write it off. Your mum would not be liable if she was not a joint account holder or guarantor.
You might want to seek some legal advice about the property forming part of his estate and how that would need to be dealt with/affect your mum.

malkyh

Sorry to hear of your loss.

As said above, debts are repaid from the estate in a certain order. If there is no money left when it is the loan's 'time' then it should be written off.

If there was PPI on the loan then that should cover paying off the balance.

brynthe_blade

The house is mortgage free, but would they insist that the £3k comes from that somehow, even though mum's still living there? She obviously couldn't remortgage to get the money out and there are no savings or anything anywhere.
Thanks people

immoral_angeluk

brynthe_blade wrote: »

The house is mortgage free, but would they insist that the £3k comes from that somehow, even though mum's still living there? She obviously couldn't remortgage to get the money out and there are no savings or anything anywhere.
Thanks people

It depends on whether they are 'joint tenants' or 'tenants in common' which is why you could do with some legal advice to give you a better idea of what'll happen.
This might clarify somewhat
http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/Preparation/DG_10029468

eggfried

Hi

I'm going through something very similar, my father in law passed away and left an unpaid credit card and an outstanding loan, the credit card company have been really patient and explained the whole process, they stopped adding interest from the date he died (in Aug 11) and we have had to complete an undertaking form listing all of his assets and liabilities, and the staff there think the debt will be written off. However another company we are dealing with are been an absolute nightmare, sending threatening letters, adding on fees to my mother-in-law who has never dealt with the financial side of life and is currently on long term sick and surviving on benefit, the loan was in his sole name, not secured against the property and I have received mixed advice from a solicitor (free 30 min session) and a probate company. I guess it will depend on the company but speak to them regarding listing all the assets and liabilities and what information they require for example he did not have a bank account in his sole name, only in joint with his wife, so not all of this money had to be included. If you get someone patient on the phone then try and go through as much as you can, some companies have an 'Estates department'.

Hope this is some help.

ceegee

I am sorry for your loss.

It may be worth giving the Probate registry helpline a ring....I found them very helpful when my Mum passed away. They are helpful and sympathetic, which is what is required at times like these.

Their number is 0845 302 0900.

http://www.justice.gov.uk/guidance/courts-and-tribunals/courts/probate/helpline.htm