Debts after death

Mojisola

valk_scot wrote: »

It's not her money to take out, unfortunately. It needs to be kept there to settle the other debts then she can have any that's left over once the debts are discharged. If none of the companies offer to take up the administration of the estate then the money has to be left in the account for twelve years jus in case. If no-one claims it by then your mother will inherit it then.

There's at least two debts - £260 and £2600.

stulaunch - how much has the finance company given back?

stulaunch

Mojisola wrote: »

There's at least two debts - £260 and £2600.

stulaunch - how much has the finance company given back?

Mojisola, sorry about the late reply. There's about £2000 left over. We had sent letters saying, by all means take on Administration if you want, to the 2 debtors. Not heard anything from the highest one, when they were told of situation on the phone originally, they said it would get passed on to the probate dept but he was fairly sure they would not bother about it. Just thought 6 months later that was probably going to be the case. None of us are going to do it and MIL definitely can't. I suppose it will be left there for 12 years, although I doubt MIL will still be alive.

John_Pierpoint

If there is no land involved, (*) you will be pretty safe to keep it after 6 years - 5 in Scotland - as long as you have no further provable contacts with the creditors during that time.
The debts might get sold on, for a fraction of their face value, to the men in big boots, so it is fair enough to say you have no idea who they are and what they are talking about and it is obviously not your debt (especially if you are a different sex from the debtor) so no need to enter into any discussions of why's and wherefor's.
[I once upon a time lived in a house bought from the mortgagees in possession - surprise surprise bankruptcy is not called "living death" for nothing - after about 2 years the inquiries dried up]

(*) Putting a legal charge on someone's real estate is a way of securing a debt and as some people in negative equity have discovered to their cost, secure debts such as mortgages can come back to haunt them more than 6 years after they "did a runner".