Credit Cards, Estate and sleepless nights Help...

Brighty

Yorkshireman99 wrote: »

Deleted due to error.

Perhaps my wording of sever is not correct, but the upshot is the same

From here http://www.summitlawllp.co.uk/blog_detail_121_Death-of-the-Debtor:-Insolvency-Administration-Orders

"Joint Tenancy

If, for example, a husband and wife purchased a property whilst the husband was alive and registered their ownership as joint tenants the meaning of this would be that if the husband were to die, the husband's beneficial interest would pass to his wife. This process of survivorship is automatic and does not require a last Will and Testament.

The result of this is that the deceased's estate would fall in value which is a concern for the Insolvency Practitioner who will be attempting to realise the deceased's assets for the benefit of the deceased's creditors. Often a house will be the principle and only asset of substantial value in an insolvent individual's estate.

Fortunately, the Act caters for this situation and the Trustee will look to section 421A of the Act. This section allows the Trustee to look to the surviving joint tenant to pay to the Insolvency Practitioner a sum representing the joint tenant's share of the property at its market value."


And
http://www.hmrc.gov.uk/manuals/insmanual/ins9538.htm
"the Court may require the survivor to pay an amount not exceeding the value lost to the Estate by the automatic transfer of a joint share in the property to the survivor."

Yorkshireman99

Brighty wrote: »

Perhaps my wording of sever is not correct, but the upshot is the same

From here http://www.summitlawllp.co.uk/blog_detail_121_Death-of-the-Debtor:-Insolvency-Administration-Orders

"Joint Tenancy

If, for example, a husband and wife purchased a property whilst the husband was alive and registered their ownership as joint tenants the meaning of this would be that if the husband were to die, the husband's beneficial interest would pass to his wife. This process of survivorship is automatic and does not require a last Will and Testament.

The result of this is that the deceased's estate would fall in value which is a concern for the Insolvency Practitioner who will be attempting to realise the deceased's assets for the benefit of the deceased's creditors. Often a house will be the principle and only asset of substantial value in an insolvent individual's estate.

Fortunately, the Act caters for this situation and the Trustee will look to section 421A of the Act. This section allows the Trustee to look to the surviving joint tenant to pay to the Insolvency Practitioner a sum representing the joint tenant's share of the property at its market value."


And
http://www.hmrc.gov.uk/manuals/insmanual/ins9538.htm
"the Court may require the survivor to pay an amount not exceeding the value lost to the Estate by the automatic transfer of a joint share in the property to the survivor."

This seems inequitable since it means that the survivor is liable for the deceased's debts which they may have had no knowledge of. It means that no joint tenant can be sure that they have security of tenure upon the death of the other joint tenant.

Tuesday_Tenor

Yorkshireman99 wrote: »

This seems inequitable since it means that the survivor is liable for the deceased's debts which they may have had no knowledge of. It means that no joint tenant can be sure that they have security of tenure upon the death of the other joint tenant.

Yes, it's a difficult area. It's does seem unfair on a surviving joint tenant who knew nothing of the debt.

Conversely though, it's also unfair that creditors shouldn't be paid when the debtor had considerable assets (a whole house, owned jointly).

I've seen a link on this site where the creditor HAS successfully pursued the surviving joint tenant for repayment of the debt.

On the whole though, I think creditors wipe off many debts when told that the estate is insolvent. It's not worth the cost of pursuing it. That's why I asked for an idea of the amount of debt.