Debts after 6 years & the debtor is deceased?

Farming-girl

Hi all

Any help greatly recieved as me & my sister are struggling settling my mums estate now she has passed.

Mum was not great with money & has accrued a fair few small debts (each less than £1000) over the years. She was also in denial about the debts and so had a habit of ignoring/hiding debt letters or throwing them away.

We have spoken to most of the companies & they have agreed to wipe the debt now mum has died. However there's one company that we are unsure wether to ring/write. Details as follows:

Letter dated aug 2007 from a debt recovery company stating that the intend to start court proceedings on behalf of their client cooperative bank for approx £6000.

We have sorted through all mums paperwork & this is the ony letter we can find in relation to this debt (but bear in mind she was in denial, we don't know if anything ever came of it or if there have been any other letters since).

I am aware of debts becoming statute barred after 6 years & therefore uninforcable but we can't say 100% that there hasn't been any other correspondence since. We are worried if we don't contact them they may chase us after the rest of the estate has been settled which would be difficult to then get the money to pay them.

Any advice? Should we ring/write & inform them of death & hope they right it off or should we ignore? And what are consequences if we ignore & they later chase it? I assume we wouldn't be deemed to have done all we can to find people she owed money to?

Argh! Help please!:(

tinkerbell28

You absolutely MUST sort this properly. For £6000 the debt will most likely have a CCJ. They don't become statute barred.

If the debt is due it should be paid out of the estate before anyone else. Debts first, then you can share the estate. Eg, you, kids, etc

If you don't pay the debt in hope that it goes away, when the state has funds. Then yes you would be in trouble if they want to look into the estate. Worst cause you'd be looking at prison.

If you aren't confident in dealing with the estate I would get legal advice.

spacey2012

Question 1, has she left any money ?

Answer this first:

Farming-girl

Spacey 2012 - does she have money....kind of. Mum left a mortgage which will be bigger than the total amount to come
In from pension, savings etc (she was only 54 but took early retirement). We were going to get the mortgage transferred into our name. Would we have to add the debt amount to our mortgage to avoid having to sell the house?

Farming-girl

Tinker bell - is there any way I can find out if there are any ccj's against mums name? If it is a ccj's then will we have to pay full amount or do you negotiate? If not a ccj then would it be statue barred even though we don't know if any letters since the one in aug 2007?

Thanks

molerat

Is the house in your mother's name only ? If so then the value of the house less the mortgage is part of the estate + any savings etc, insurances usually are outside of the estate and are paid to whoever is nominated on the policies. If there is any equity in the house then you may have to raise the funds to pay off the debts. You really need to look into this debt to find out if it is statute barred and not distribute the estate until it is sorted either way. You can search the register for a small fee, the cost can be paid for out of the estate (carrying out due diligence) http://www.trustonline.org.uk/search-others/

Farming-girl

Right ok. As I thought it would need to be paid out first. If I check that database & it's not on there does that defo mean it's not a ccj & therefore would be statute barred? And If it is statute barred then what do we do? If it is ccj hen as I understand we need to pay out of estate - that's fine....would people usually negotiate in these circumstances like you would when alive or just accept the full debt of £6000 & pay that? Should I ring them tomorrow to see what they say or search database first?

Thanks for all your help....we don't know what to do first & don't want to make any mistakes which might compromise things at a later date! (I am only 27 years & my sis 23 so a little out of our depth to say the least!)

Farming-girl

Sorry forgot to answer - mortgage only in mums name. No spouse

spacey2012

You would normally place an advert stating any claims upon the estate to be made to the executor.
Think there is a standard publication for it.

tinkerbell28

You need to make an advertisement in the paper. You will have to make absolutely sure you follow the correct steps as if you are executor you will be liable if creditors come hunting down the estate in years to come.

Do not distribute anything until you're sure. In your shoes. I'd certainly be getting legal help with it tbh.

Mojisola

tinkerbell28 wrote: »

You need to make an advertisement in the paper.

Traditionally, the advert should go into the London Gazette.