Death of the judgment debtor

ILW

frilly_knickers wrote: »

They didn't know that there were any creditors, other than the usual utilities and normal outstanding bills. There was nothing in the property relating to the debt, which can't really be proved obviously.
The bailiffs have not been told who the executor was, so it may be best to leave it that way, and play "dumb" and say it was a joint effort to distribute finances.

They can ask for some of the money back from beneficiaries if they get chased by the creditors.

Is it baliffs or just debt collectors?

debt_doctor

Unfortunately, and especially if no advertisment was placed asking creditors to apply to the estate, then the person administering the estate can be held liable and indeed as posted above, those who have benefited from the estate can also be held liable.

DD

mjm3346

frilly_knickers wrote: »

I thought debts died with you!

They do, that is any excess over the value of the estate does (after funeral expenses etc) but the debt is settled before a beneficiary can get anything.

kepar

Just my tuppence worth, but surely the Executor would be named in the will.

Heycock

The only way for an executor to ensure they aren't held liable if a creditor turns up later is to have taken out a legal notice in a local newspaper requesting anyone with an interest in the estate to come forward by a certain date. This covers against future claims by all creditors and people who claim they should have been beneficiaries. otherwise it is the executor not the recipients who are liable to pay.
This assumes there was a will. If not then he died intestate and the "executor" had no legal right to be involved in the distribution of the estate at all!

jackywhizz

We had this situation with my late MIL's estate. The solicitor felt that not all the creditors had come forward and letters that I discovered at the house supported this. However they were destroyed by one of the beneficiaries and never handed to the Solicitor. The Solicitor paid out the estate with the warning that beneficiaries could be sued by any remaining creditors.

This was only an issue for 2 of the beneficiaries, ourselves included, who owned their houses and didn't have bad credit records. The creditors can claim repayment from any beneficiary, not a proportion from each, thus they would have been most likely to pursue those who would pay.

We held the money for 6 years before we felt safe to spend it. Suffice to say half the family don't speak to the other half now =(

frilly_knickers

Heycock wrote: »

The only way for an executor to ensure they aren't held liable if a creditor turns up later is to have taken out a legal notice in a local newspaper requesting anyone with an interest in the estate to come forward by a certain date. This covers against future claims by all creditors and people who claim they should have been beneficiaries. otherwise it is the executor not the recipients who are liable to pay.
This assumes there was a will. If not then he died intestate and the "executor" had no legal right to be involved in the distribution of the estate at all!

There was no will, the deceased, as I said was terminaly ill and during a discussion with members of the family it was agreed that the person concerned should deal with any monies left after funeral expenses and bills.
It was accepted by everyone concerned, so there were no problems. I can only assume that the deceased had either forgotten about the debt, or just didn't mention it.
The bailiffs came to the rented property and asked for the deceased, which was when it all came to light.
The person who dealt with the estate, was in effect doing a favour, it was not a legal position, just sorting out affairs.
They don't even live in the area and up to now are not aware of the situation which is why I am asking, because we fear it may escalate, but don't quite know what to do. My thoughts are to lie low. But it's a real nuisance and as I said totally unfair.

bargainbetty

Just a thought, but you said it was a writ. Can you explain more about the actual claim the baliff is making?

Value, type, court ordered etc... a writ can be issued for court action, but not be court ordered as yet, if you see what I mean. I'm wondering what stage the claim was at when the baliff arrived. Is it just a debt collector? Has the debt been proven? Could a judgement be set aside, since any proceedings would have likely taken place without the deceased's knowledge, or during the final stages of their illness etc?

Harry_Boyle

Thrugelmir wrote: »

Executors can be found liable and therefore have personal responsibility.

Details here:

http://www.se-law.co.uk/personal/wills-probate/liability-of-executors-and-their-protection.aspx

"A word about outstanding debts

Finally, there will be debts incurred by the deceased that are still outstanding at his or her death. If the Executor has inadvertently distributed the assets of the estate to the beneficiaries, without making a sensible reserve, then the creditor may pursue the Executor personally.

Executors have to take care not to distribute all assets to the beneficiaries until they are certain that all known or likely liabilities have been discharged."

antrobus

frilly_knickers wrote: »

...
The person who dealt with the estate, was in effect doing a favour, it was not a legal position, just sorting out affairs...

It sounds to me that the estate was dealt with informally. No will, no executor, no one applied for letters of administration. someone simply wrote a few letters, made arrangements, and made sure the funeral directors got paid.

I don't think any legal liability attaches to someone who informally deals with an estate.

frilly_knickers wrote: »

...... My thoughts are to lie low.

It's a plan. After all, if the estate was dealt with informally, there will be no legal record of who did or what happened.