deceased persons credit cards

mak83

Originally posted this in credit cards, did not see this section

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

Shelldean

when my f-I-l died he had a balance on his card of about 600, I sent the death cert and this froze the account. They wrote and asked about us paying it, we simply replied saying no estate (there wasn't anything at all, not even for his funeral) They did try a few times, but got the same reply each time.
They did cease eventually

thorsoak

If your late father had PPI, then the credit card company would be able to call on this to clear any debt.

Macca83_2

Some companies send a form asking you to detail the estate and what assets your father had. I think from the sounds of the letter they are requesting to know whether you are dealing with the account or a solicitor. Perhaps it would be wise to phone them. Most companies had a bereavement centre who can advise you exactly mict they'll need

mak83

thorsoak wrote: »

If your late father had PPI, then the credit card company would be able to call on this to clear any debt.

I wish ;-) no he never had PPI, i was hoping for this.

securityguy

mak83 wrote: »

He only had about 5k and after paying for the funeral and paying off the mortgage arrears

Mortgages aren't preferential creditors, are they? The credit card companies could reasonably ask why it was that the mortgage got paid from the estate and they didn't.

getmore4less

mak83 wrote: »

Originally posted this in credit cards, did not see this section

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?

What are you doing? was there a will is it intestate is the grant being applied for

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

Mortgage arrears probably should not have been paid in preference to other debts his could be a potentially serious error.

What's the property worth?
What's the mortgage Debt?

mak83

The property is worth approx £130k and theirs about £35k outstanding on mortgage.

This is what i found on a site:

In paying off these outstanding debts, the executor or administrator must ensure that they repay the deceased individual’s creditors in a certain order. Mortgages must be paid off first, followed by rent arrears; water rates; council tax; fuel; personal loans and credit cards; and finally debts to the Exchequer such as outstanding tax or overpaid benefits.

marliepanda

So is the house part of his estate?

If there is equity in the house then when that is sold, the credit cards will have to be paid from that.

Tixy

That quote from a site is definitely correct for a person with a mortgage and property in their sole name, but with the property and mortgage in joint names, and therefore not part of the estate the situation is different.

getmore4less

mak83 wrote: »

The property is worth approx £130k and theirs about £35k outstanding on mortgage.

This is what i found on a site:

In paying off these outstanding debts, the executor or administrator must ensure that they repay the deceased individual’s creditors in a certain order. Mortgages must be paid off first, followed by rent arrears; water rates; council tax; fuel; personal loans and credit cards; and finally debts to the Exchequer such as outstanding tax or overpaid benefits.

This is wrong and out of date.

The secured debt only uses the assets they are secured on if there is a short fall then the remaining debt joins the unsecured debts.

The other errors are in the order. [STRIKE]eg; council tax is not a priority[/STRIKE].

edit: I read it wrong, although the state debts AIUI are on the same priority as the others, it used to be different order a few years back so these site you used are probably just out of date.
/edit

This is a better description

http://www.bereavementadvice.org/probate-and-other-legal-procedures/insolventestates.php

and the house this is relevent
http://www.hmrc.gov.uk/manuals/insmanual/ins1703.htm