Debt after Death confusion.

g6jns_2

Artshot wrote: »

The debt is only for £6900 with MBNA which I would say is no more than 10 years old, it was actually the subject of a Debt Management Plan, which was being paid on time with no problems, then suddenly I find out on Saturday that it has been sold to Arrow Global, contact is to be made through there representative solicitors.

At the moment the only money left out of the insurance is about £4800 which should be split between MBNA and the other three creditors of her DMP, which based on percentages of initial debts, makes 47% of her total debts owed to MBNA.

47% of the remaining insurance money is about £2280, which is about 33p in the pound.

I am hoping it is a fair offer to make and will be accepted.

From what you say the estate is insolvent. If so then leave well alone and let the creditors sort it out. If however you have started dealing with things this may be not be an option.

getmore4less

The estate includes a jointly owned house.

How did you declare this for the IVA?

Marktheshark

At ten years Old there is every chance the Debt collectors do not hold the paper work such as credit Agreements .
It might be wise to start with prove it letters and CCA requests.
Any executor of any worth only pays those who can prove they are owed the money, otherwise you find them coming out of the woodwork.

All you are saying is I have some money here for creditors, but I can only pay those who can prove that they are owed, I dont know who you are ?
supply paper work, credit /loan agreements, payment details, interest calculations so I can check them with the Credit agreement .
All delivered to so I can evaluate your claim.

Crabapple

Marktheshark wrote: »

At ten years Old there is every chance the Debt collectors do not hold the paper work such as credit Agreements .
It might be wise to start with prove it letters and CCA requests.
Any executor of any worth only pays those who can prove they are owed the money, otherwise you find them coming out of the woodwork.

All you are saying is I have some money here for creditors, but I can only pay those who can prove that they are owed, I dont know who you are ?
supply paper work, credit /loan agreements, payment details, interest calculations so I can check them with the Credit agreement .
All delivered to so I can evaluate your claim.

However, if it was already part of a debt management plan I don't see how it's going to be possible to start disputing or even enquiring further about this now.

I didn't think that debts being paid were normally sold though.

Artshot

I cannot dispute the debt, it is what it is.

The strange thing about the debt is that apparently MBNA do a seven month review of there DMP debtors, which was the month my mother died, they then closed the account on the 26th of January, I was not aware they could actually sell the debt of a deceased debtor.

I am hoping that the upfront offer of a percentage of the debt, will be accepted.

BobQ

g6jns wrote: »

From what you say the estate is insolvent. If so then leave well alone and let the creditors sort it out. If however you have started dealing with things this may be not be an option.

The estate includes a joint share of a house, so it is not insolvent. The creditors can claim from the OP's mother's share of the house, as Crabapple said earlier.

g6jns_2

BobQ wrote: »

The estate includes a joint share of a house, so it is not insolvent. The creditors can claim from the OP's mother's share of the house, as Crabapple said earlier.

It depends who the true owner is. It is not clear how the property is held.

BobQ

g6jns wrote: »

It depends who the true owner is. It is not clear how the property is held.

This was clarified in message 17, easily missed. It is in both names.

g6jns_2

BobQ wrote: »

This was clarified in message 17, easily missed. It is in both names.

Post 17 says that it is joint tenants and the OP is now sole owner by survivorship. If so then surely the estate is insolvent or have I misunderstood?

Crabapple

g6jns wrote: »

Post 17 says that it is joint tenants and the OP is now sole owner by survivorship. If so then surely the estate is insolvent or have I misunderstood?

The estate has no cash, but the share of the property that was owned can still be taken into consideration by creditors, even where it was owned under a joint tenancy.

I can't find the rules on it right now but others have made the same point on this thread. The law was changed a few years ago I think.