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Selling inherited property - unsecured debt - Scotland?
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Caleb11
Posts: 200 Forumite
Hi
Wondering if someone can help me. I am selling my late fathers estate. He died in December 2009. The house is selling for £105k with 95k roughly owed on it with secured debt. He had quite a lot of unsecured debt. I received a few letters when he first died from the unsecured lenders saying the wanted to register their claim against the estate. I wasn't in the frame of mind to deal with it then and I though that the debt would have just died with him. He owes family members £15k but we are going to use the £10k left over and make repayments for the other £5k. What is the process? Is there a time frame that unsecured lenders can make a claim against estate? If they have made a claim will my lawyer need to pay them? What if there isn't enough money to pay it?
Thanjs
Wondering if someone can help me. I am selling my late fathers estate. He died in December 2009. The house is selling for £105k with 95k roughly owed on it with secured debt. He had quite a lot of unsecured debt. I received a few letters when he first died from the unsecured lenders saying the wanted to register their claim against the estate. I wasn't in the frame of mind to deal with it then and I though that the debt would have just died with him. He owes family members £15k but we are going to use the £10k left over and make repayments for the other £5k. What is the process? Is there a time frame that unsecured lenders can make a claim against estate? If they have made a claim will my lawyer need to pay them? What if there isn't enough money to pay it?
Thanjs
0
Comments
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There should be no need for family members to pay anything towards the unsecured debts. Whatever cannot be met from your father's estate will not be paid; there will be no further liability on you or any other family members. I suspect each creditor will have to take a pro rata share of what funds are left after payment of the secured debt and solicitors fees and costs - your solicitor can best advise.
As for debts owed to family members, depending on whether they are documented etc. they may be able to be repaid in the same pro rata manner as other non-secured creditors, but again your solicitor should be in full possession of the facts and able to advise accordingly. If the family loans are undocumented it may be that it will not be possible for anything to be repaid to them.
hth0
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