A Morbid Thought Re Unenforceable Accounts

Mrs_Nobody

As mentioned earlier, I've been on a DMP for about 4 years and am currently waiting the response of a CCA request from four of my creditors. I'm also knocking on a bit and have a chronic health condition which can only get worse - it'll never get better.

If, as a result of that request, it turns out those debts are unenforceable, I plan to make some full and final settlement offers.

What would happen, though, should I die before those full and final settlement offers are agreed? Would those creditors be able to claim the full amount from my estate, or should I tell the executors of my will that those debts are unenforceable so they shouldn't pay up? Is there any case law on this?

fatbelly

This isn't going to be a full answer as your question covers some areas I am not familiar with.

My understanding is that the executor/personal representative has first to meet funeral costs, then creditors, out of the deceased estate, before distribution to beneficiaries.

Any fees incurred by the executor for professional advice would be a priority debt and would be payable out of the estate before most other creditors’ claims.

If they could but did not did not pay creditors, they would be personally liable and could have court action taken against them. At that point the executor would have to argue unenforceability. Unless they were also a major beneficiary, they may not be motivated to do so.

Another thought is that non-compliance with a s77 request only renders the account temporarily unenforceable. Producing a properly reconstituted agreement satisfies that section.