Dad passed away with no money but debts!

Djombee

He had 16,000 of debts as part of a debt consolidation package, does anyone know if as his son I am liable to pay at all - I can't find a straight answer online.

Thanks,
J

*~Zephyr~*

Don't panic! If he has no money or assets (property etc) to cover his debts then his estate is what is called insolvent. You do not have to pay any debt that you haven't taken out in your own name.

The best thing you can do is to just inform his debtors of his death and leave it to them. Don't apply for probate or letters of administration. If his debtors want to do so, let them.


What has happened with his funeral?

atrixblue.-MFR-.

I thought once someone died in debt and no property or assets the debt dies with them so to speak, A DRO can be a contract that upon death you (the deceased) give permission for them (the creditor) to have the debt paid back through probate or whats left of any assest after a will. if no will and no assets property etc, just inform them (creditors) with a Copy of a death cert that he has passed and that unfortunately had no assets/property/or positive bank credit. it should stop recovery and any pestering from any Debt recovery.

Yorkshireman99

First thing. The local authority or hospital where he died have to pay for the funeral if there is no money or property. Nobody else can be forced to pay. Make sure you don't arrange the funeral or you will be liable. Did he own a house?

HappyMJ

Djombee wrote: »

He had 16,000 of debts as part of a debt consolidation package, does anyone know if as his son I am liable to pay at all - I can't find a straight answer online.

Thanks,
J

That's because there is no "straight" answer.

Yorkshireman99

HappyMJ wrote: »

That's because there is no "straight" answer.

The straight answer is that unless he has guaranteed the debt he is not liable.

AngelOfTheNorth

There is a straight answer. You're not liable for debt that isn't yours. The confusion comes because debts are taken out of any estate the deceased left. So if your dad left 16k of debt and owned a 100k house, the beneficiaries are going to get 84k not 100k. They won't have paid for the debt, the money he left will, but some people see it as them paying because it means they get less money and they don't think about what point the estate becomes theirs.

Djombee

Thanks for all of your answers, the funeral was tough - me, my brother and sisters had to club together to pay. The only ting we really has that might be considered worth something is his car (which isn't worth much) will the debt company seize this? All he has other than that is "junk" which may or may not be worth anything, I highly doubt anyone would take it!

worried_jim

Normally if there are no assets the debt would be written off. Its unlikely they would take the car and then have to go through the process of its disposal to raise funds.

You are not responsible for your Dad's debts, his estate is, it is not transferable to you.

Djombee

worried_jim wrote: »

Normally if there are no assets the debt would be written off. Its unlikely they would take the car and then have to go through the process of its disposal to raise funds.

You are not responsible for your Dad's debts, his estate is, it is not transferable to you.

Thanks! its been a bit of a worry to be honest

PasturesNew

Debts die with the person.

However, everything they own (from their car and hi-fi, to the saucepans and curtains) are "their estate" - so, should there be sufficient money available by selling their stuff to settle the debts then the debts should be paid from their estate.

People often confuse the terms "their estate" to mean "that's something for posh folks", but he might, say, have a collection of 2 Rolex watches and 4 gold sovereigns and an old caravan at Hemsby.

Estate = "everything they own".

Of course, flogging his plates for 50p/4 at the car boot sale to try to sell everything to settle such a large debt isn't what it means either, as that's just daft.

But, sitting back, ignoring all the "tat" he owns, is there anything that he owns that actually has "true value".... a car, a flash watch, etc etc - they'd be "his estate".

If he died with £5 in the bank and a £50 sofa, then then £16k would be written off.

It is further complcated by any pensions/lump sums that some people might be receiving upon their death.

So you really need to sit and think about what he's got and what it's worth, before asking the question again ... about whether XYZ should be sold/used to pay the debts or not.

Once there's nothing left in the pot, they CAN'T/WON'T come after you for the rest.