Credit card debt following husbands death

Treedog

My husband has recently passed away and he had a credit card in just his name which has an outstanding balance of approx £7,000. He had no savings, and we had a joint mortgage so as far as I'm aware there is no value to his estate. I contacted the credit card company to advise of his death and also advised them that he has no estate to repay the debt. They have now written to me asking me to complete an assets and liabilities form for my late husband, do I have to do this, as this will give them personal information about me.

PeacefulWaters

These things aren't easy after such a major loss.

It's not an unreasonable request that they're making, although they can't make you fill it in. Once completed, assuming there are no assets, it should be the end of it.

How is the house ownership held - joint tenants or tenants in common?

Marktheshark

You do not have to complete any form or give them any of your financial information.
They should know this, it is an unsecured debt and inform them if the deceased had any estate the executor will write to them to arrange payment.

Treedog

Hi, the house was owned as joint tenants. I have been dealing with my husbands estate myself, I'm just unsure about giving them information about me as I have heard stories that some companies try to make the widow pay the debt. There was not a will.

Marktheshark

Treedog wrote: »

Hi, the house was owned as joint tenants. I have been dealing with my husbands estate myself, I'm just unsure about giving them information about me as I have heard stories that some companies try to make the widow pay the debt.

If there is no will, the property needs to be valued and the equity in the property vs mortgage established.

What they want is you to provide them information you can not pay as sole inheritor of his assets as in equity share so they can use that information to force a sale via the courts.

They are very ruthless people.
Hence why any equity gets valued ASAP and you do not give them information they can use to force an early sale at auction.
You play hard and fast with them and should it come to the house having to be sold, it gets done on your terms at your price by fighting and delaying them.

Marktheshark

First thing is to place a third party in the way of them.
Write back and tell them they need to address any demands to "the administrator" of the estate of the deceased Mr "XXXX XXXX"
effectively creating a temporary trust they must deal with directly.
Use that title for correspondence with them.

When the Administrator obtains letters of authority they then contact the creditor and inform them they will have to await the official valuation of the estate of the deceased like everyone else.

Once they have been informed the estate is in or seeking to appoint an administrator they must deal with that administrator as a third party appointee.

It can be you, but it protects you until the estate is signed off which can take several months.
Then they become a creditor of any assets remaining.

This buys you a lot of time as you have to first apply for letters of authority to administer the estate.

bris

They are not asking for information about you, they are asking for information regarding your husbands estate, they are within their rights to do this as you are the executor of the estate.


Dealing with an estate can be very complex and if you are not up to it then you should seek professional help. If you get it wrong then you could become personally liable for the debt.

PeacefulWaters

Treedog wrote: »

Hi, the house was owned as joint tenants.

That's good news then.

I have been dealing with my husbands estate myself, I'm just unsure about giving them information about me as I have heard stories that some companies try to make the widow pay the debt. There was not a will.

If you complete and return the form (keeping a copy) and they then try to pursue you for the debt a simple response of "I've advised you that the estate doesn't have assets to cover the debt and I will see any further pursuit as harassment" should bring things to an end.

Marktheshark wrote: »

First thing is to place a third party in the way of them.
Write back and tell them they need to address any demands to "the administrator" of the estate of the deceased Mr "XXXX XXXX"
effectively creating a temporary trust they must deal with directly.
Use that title for correspondence with them.

When the Administrator obtains letters of authority they then contact the creditor and inform them they will have to await the official valuation of the estate of the deceased like everyone else.

Once they have been informed the estate is in or seeking to appoint an administrator they must deal with that administrator as a third party appointee.

It can be you, but it protects you until the estate is signed off which can take several months.
Then they become a creditor of any assets remaining.

This buys you a lot of time as you have to first apply for letters of authority to administer the estate.

Why drag it out as far as the card company is concerned?

xHannahx

Send them proof there are no funds in estate and that should be the end of it.

A company isn't going to just write off a debt because you say so, they will need proof there is no funds.

They should give you time to do this though and not expect it instantly.

pvt

Treedog,

Sorry to hear of your loss.

As others have suggested, if you have been appointed as Executor then I suggest you get some legal advice - the cost of which will be paid from his estate anyway.

Beware, as Bris has warned, if you get it wrong then you as Executor may become personally liable.

Marktheshark

With no will the Estate would have an Administrator, this is who the credit card company should be writing to as a third party.
It creates a safety gap around her as wife as they must then deal with this third party with enquiries and refer to them as the administrator or executor.
Slows everything right down, gives her chance to learn the ropes and she does not have to have a greedy !!!!!ish debt firm trolling her personally.

Simply write back and inform them to only write to the administrator of the estate of the deceased Mr XXXXXXX.

Inform them you have no personal liability for anyone's credit card bill and the estate will be wound up by the administrator who will deal with any claim against the estate of the deceased in accordance with the law.


Failure to comply will result in a claim for harassment.
Until the estate is administered the wife is just another creditor or debtor like the credit card firm.

She can then get the mortgage deeds looked at to see if the house is protected.
whilst his share of anything is been administrator, they can not case her or attempt to force a sale as any assets or claimed security is held in trust by the administrator.

If they were to file for a property charge they will be thrown down the court steps backwards until the estate accounts are filed and creditors prioritised.
As an unsecured debt they get to feed at the bottom of the left overs pile.
Funeral expenses, tax owed, benefit over payments, secured loans all come in well before.

If they don't like that, don't lend money.