deceased persons credit cards

mak83

Hello,

i am looking for a bit of advice, my farther passed away last year and had 2 credit cards I have written to them sending them a copy of the death certificate and informing them there is no money in the estate and asking if they would consider writing the balance off.

one of them have written back confirming the balance and asking how the estate is being dealt with. What information do I need to send them?

He only had about 5k and after paying for the funeral and paying off the mortgage arrears (mortgage was on hold as agreed with the provider while he could not work and being treated for cancer) there is no money left in his estate.

Any help or advice is welcomed

Thanks

CLAPTON

does the house have an equity in it?
who owned the house

mak83

yes the house would have, its worth approx £130k and there about £30k outstanding on mortgage. The house was purchased jointly by my mum and dad so shes the owner now.

Buzby

As he has assets, then I really doubt whether you can expect them to take the hit. The usual routine is for them to freeze the interest but seek an attachment through the Land Registry, so that they get paid, but only when the property is sold.

Tixy

The house was joint tenants I guess, not tenants in common?

If the house and mortgage were in joint names I wonder if the credit cards may have taken precedence over the mortgage arrears, which your mother would have become liable for. I don't know I just wonder.

I'd take some advice on this, ideally from a solicitor or you could try posting on the Deaths, Funerals & Probate section of the forum.

mak83

I thought credits cards where unsecured so how can they secure there money on a house?

Tixy

mak83 wrote: »

I thought credits cards where unsecured so how can they secure there money on a house?

This factsheet mentions the rare possibility of an insolvency administration order (first page under mortgaged house, joint tenants)

http://www.bdl.org.uk/images/21_EW_NDL_what%20to%20do%20about%20debts%20when%20someone%20dies.pdf

planteria

mak83 wrote: »

I thought credits cards where unsecured so how can they secure there money on a house?

i wondered that. i will be interested to learn how this story unfolds. is it not the case that the assets are now mak83's mother's, and the debts are written off?

CLAPTON

planteria wrote: »

i wondered that. i will be interested to learn how this story unfolds. is it not the case that the assets are now mak83's mother's, and the debts are written off?

no it isn't

read Tixy link above

chattychappy

Tixy wrote: »

If the house and mortgage were in joint names I wonder if the credit cards may have taken precedence over the mortgage arrears, which your mother would have become liable for. I don't know I just wonder.

Yes, I would also be concerned if the lender was paid in preference to the CCs. What was agreed with them before death doesn't really enter into it.

bris

The house wont be part of the estate and would revert to the mother.

The rent arrears should not have been paid off as the money should have been divided between all creditors on a pro rata basis, after funeral expenses.