deceased persons credit cards

madbadrob

Getmore your first link shows that mortgage should be the first debt paid even before the funeral.

My question to the OP is if the house forms part of the estate why can this not be sold and the debts paid? This is in fact what has to happen

Rob

getmore4less

madbadrob wrote: »

Getmore your first link shows that mortgage should be the first debt paid even before the funeral.

My question to the OP is if the house forms part of the estate why can this not be sold and the debts paid? This is in fact what has to happen

Rob

ONLY up to the value of the asset it is secured on, you should not use other assets to pay off a secured debt, what's left if the assets don't cover the secured debt becomes unsecured along with the rest.

The house was joint, so falls into that middle ground where after the Insolvency Act 2000 a claim can be made.

Link above.

madbadrob

I dont see where the OP says the house was joint owned though and therefore any assets in the estate should be used to pay off the mortgage. If there is say 10k of the mortgage left to pay and 10k in the estate then that is enough to pay the mortgage. I agree that they should not be say selling a car to pay this debt but the cash should be if I understand the law correctly.

Now with the house paid for and if noty jointly held as joint tenants then the house should be sold to pay the unsecured debt. If the property was jointly owned then any debts on that property become the other owners responsibility and money in the estate should be used to pay unsecured debts. It gets more complicated if the house is jointly held but the mortgage is in one name only

Rob

getmore4less

first line of OP post here

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

op has 9 posts read them all.

You can't use ANY assets even cash in the estate to pay off a secured debt AHEAD of the other unsecured debts.

even from the posts here the mortgage arrears were paid and there is no money for the CC this is not allowed.

newbutold

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?

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

Where did the 5k come from? I believe if it was in a joint account with his wife, then it automatically passes to her and doesn't form part of his estate. Hopefully this is the case, therefore they will be no problem with you paying the mortgage arrears off.

madbadrob

getmore4less wrote: »

first line of OP post here

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

op has 9 posts read them all.

You can't use ANY assets even cash in the estate to pay off a secured debt AHEAD of the other unsecured debts.

even from the posts here the mortgage arrears were paid and there is no money for the CC this is not allowed.

So the OP says the 5k was to pay of the arrears and I get what you are saying now because those arrears would technically be unsecured and therefore the CC should have got a share. However the way around that is to say that this 5k was to pay a part of the mortgage which is a secured debt and therefore payable before unsecured debts.

Either way assuming the house was held in the deceased name only it will need to be sold to pay the rest of the mortgage and the debts to the CC companies

This is not an insolvent estate

Rob

Tixy

madbadrob wrote: »

Either way assuming the house was held in the deceased name only it will need to be sold to pay the rest of the mortgage and the debts to the CC companies

OPs other thread says the house was held jointly owned by father and mother. The post sounds like joint tenants, rather than t-i-c.

madbadrob

Tixy wrote: »

OPs other thread says the house was held jointly owned by father and mother. The post sounds like joint tenants, rather than t-i-c.

And if that is the case then the money paid to pay of the arrears should not have been used as the mortgage passes with the house and its debt as well

Rob

AMILLIONDOLLARS

The money was paid, nothing they can do about it now! Question, what happens next? If there is a mother she inherits the house and any outstanding mortgage that goes with it. If the cards were solely in his name, surely it may have to be written off by the credit card companies as there is no more money. They could try taking the mother to court, but I suspect that no court would want to make the mother homeless because of this debt.

AMD

madbadrob

AMILLIONDOLLARS wrote: »

The money was paid, nothing they can do about it now! Question, what happens next? If there is a mother she inherits the house and any outstanding mortgage that goes with it. If the cards were solely in his name, surely it may have to be written off by the credit card companies as there is no more money. They could try taking the mother to court, but I suspect that no court would want to make the mother homeless because of this debt.

AMD

Actually yes there is. The fact the debt was paid erroneously means that the executor is liable for that money and therefore has to claim the money back if they can or pay the money themselves. That is how the law works

Rob