Can anyone help?

reece240692

Hi all,

I'm quite new to the forum and this situation in general so please excuse my naivety.

Basically, my OH's mother unfortunately passed away earlier this year due to a Diabetic seizure, my OH is the only next of kin as her Father passed away in 1998, (she is only 20, myself being 21), and has a slipped disk in her back, she was previously at College but due to her back problems she is no longer a full time student, so the Council have sent a bill through for £2500 for Council Tax Arrears.

My OH hasn't got a penny to her name, the only money she had was Compensation she obtained from the Criminal Injuries Compensation Authority for a Knife Attack she sustained 5 years ago (they only just paid it to her in the latter half of last year) in which she was severely injured and has contracted Post-Traumatic Stress Disorder from.

We've already applied for Probate, and haven't heard back from the Solicitor yet, and we're also enquiring about whether my OH would be entitled to recieve her mum's pension from the NHS (her mum was a nurse), but as it stands we have a Mortgage, Council Tax, Credit Cards, Loans, Gas, Electric, Water, Ground Rent, Shopping and all your other expenses with no way to pay them, we've been spending her Compensation money simply to be able to afford to live.

We're at our wit's end and Considering selling the house/Remortgaging/Going Bankrupt/Allowing repossession of the house and it's contents because the situation has gotten so dire.

I joined this forum in the hope that someone out there knows about these kinds of situations better than I do, and can hopefully provide me with some advice and guidance on what I should do and how I can go about doing the best I can for my OH.

Thanks for your time, any and all advice would be greatly appreciated.

McKneff

Your other half is not responsible for any debts in her mother's name.

Any debts, including council tax, funeral costs should come out of mothers estate. If there is no money left, then any debt has died with mother and will be written off.

Has she spoken to the council about the council tax.

reece240692

I was under the impression that the estate would belong to my OH anyway, and that financial obligations are passed to the next of kin if there is one and if there isn't then it gets written off?

if the above is wrong, then how do we go about writing these debts that belonged to her mother off?

we haven't spoken to the council so far but we are doing that tomorrow, as far as we're aware from our previous experience we are expecting that they would be unlikely to consider writing the Council Tax off or even coming to a reasonable arrangement =/

~Beanie~

reece240692 wrote: »

but as it stands we have a Mortgage, Council Tax, Credit Cards, Loans, Gas, Electric, Water, Ground Rent, Shopping and all your other expenses with no way to pay them, we've been spending her Compensation money simply to be able to afford to live.

I'm a bit confused at the moment Are these bills/debts in your OH's name or are they relating to her mum before she passed away?

Did your OH live with her mum and do you now live together? Do you work? Whose mortgage are you paying, your own or her mums?

Shovel_Lad

I'd suggest you post this on the Deaths, Funerals and Probate board.

http://forums.moneysavingexpert.com/forumdisplay.php?f=217

You might also find this useful:
https://www.gov.uk/browse/births-deaths-marriages/death

And this from the above board:
https://forums.moneysavingexpert.com/discussion/4216467

reece240692

~Beanie~ wrote: »

I'm a bit confused at the moment Are these bills/debts in your OH's name or are they relating to her mum before she passed away?

Did your OH live with her mum and do you now live together? Do you work? Whose mortgage are you paying, your own or her mums?

My Apologies,

We're living together at the moment in my other half's house (previously my OH's mum's house before she passed away), and all of the bills were in her mum's name, we're both unemployed at the moment due to me finishing a temporary contract and with my other half's bereavement and back problems she's not feeling ready to work yet, I don't have a mortgage myself but the mortgage on the house was in her mum's name which we have a repayment holiday on at the moment.

debtbustingdeb

If i understand correctly these debts are yours and not related to your OH mums.

There are lots of people on here who can give you great advise.

The first thing you need to do is post a SOA that way people can see what you are facing and wether you are getting all the help that you are entitled to.

Don,t despair help will be along soon

ap1986

I'm in no way an expert but, I'm sure that the life insurance (which I think is mandatory to buy a house) would surely pay the mortgage? Therefore, allowing whoever it's left to, in your case your OH, to either sell and pay off her Mums debts or, if there are no debts, for your OH to live in without having to pay a mortgage?

Has the insurance company been informed? Does the mortgage company know that the owner has died?

reece240692

debtbustingdeb wrote: »

If i understand correctly these debts are yours and not related to your OH mums.

There are lots of people on here who can give you great advise.

The first thing you need to do is post a SOA that way people can see what you are facing and wether you are getting all the help that you are entitled to.

Don,t despair help will be along soon

Thanks very much for your help, just to clarify that I came onto the scene and got with my girlfriend after her mum died, I don't believe I personally (on paper) am responsible for any financial obligations, I just help my OH because I live with her of course =]

Our SOA is as follows, we don't have an income as yet but we do have a current bank balance of roughly £800.

Mortgage: £330 Per Month, £35000 Total (Currently on repayment Holiday)
Electric Meter: £25 Per Week
Gas: £170 Per Annum
Council Tax: £2500 in Arrears, Currently Unpaid
Credit Cards: £2,500, Currently unpaid.
Water: £33 Per Month
Shopping: £60-£100 Per week
Fuel: £10 Per Week
Car Insurance: £200 per month

reece240692

ap1986 wrote: »

I'm in no way an expert but, I'm sure that the life insurance (which I think is mandatory to buy a house) would surely pay the mortgage? Therefore, allowing whoever it's left to, in your case your OH, to either sell and pay off her Mums debts or, if there are no debts, for your OH to live in without having to pay a mortgage?

Has the insurance company been informed? Does the mortgage company know that the owner has died?

Thanks for your input =]

My OH's mum never had life insurance unfortunately, i believe she took it out alongside the mortgage but stopped paying the insurance because of financial difficulty, so the insurance was void.

Also the Bank is aware of the death and has granted a 12 month repayment holiday on the mortgage. =]

~Beanie~

ap1986 wrote: »

I'm in no way an expert but, I'm sure that the life insurance (which I think is mandatory to buy a house) would surely pay the mortgage?

Life insurance certainly isn't mandatory, I've got a mortgage and haven't got any. If there isn't any I would imagine that eventually the house would have to be sold to repay the mortgage but a 12 month payment holiday should definitely give you some breathing space.

If the credit cards are in your OH's mums name, you need to advise them that she has passed away (probably need to send a copy of the death cert) and let them know that you are waiting for probate.

Are you or your OH claiming any benefits at the moment with you both not working? If not, you should look into it ASAP.