Deceased no Estate - Dealing With Creditor

msnigella

Evening all.

My father passed away in March this year and I am trying to help my mother deal with the necessary paperwork.

There was £2900 left in his bank account and the funeral cost £3500. He and my mother jointly owned a (mortgaged) house, life insurance has paid £25K towards the outstanding mortgage, leaving approx £45k still owed.

As I understand, probate is not needed as there was so little left in his account, and as the house was jointly owned this passes to my mother and does not form part of the estate.

So far we have identified one debt, in his sole name, an MBNA credit card with an outstanding balance of £1365.73.

I sent the template letter found on http://www.bereavementadvice.org/probate-and-other-legal-procedures/insolventestates.php advising insufficient funds to meet debts and asked if the debt would be written off.

We received a reply today advising the 'formal temination of the Credit Card Agreement will take effect on 03 July 2014. After this date the account will be closed and the outstanding balance will be due and payable.'

Where do we go from here? My mother does not have the funds to pay this debt and there was no PPI on the card to pay it.

Thanks in advance