Debts written off but money in estate

monkeysrevenge

Hi all,

Further to my other thread re my mother's passing recently, I have contacted a debt management company who she was paying £xx per month back to as part of an old debt.

There will be money in the estate following the house sale, but it sounds like the company are planning simply write the debt off - and we're talking over £6k outstanding.

They haven't explicitly said they would write it off, but they did write "no further contact shall be made regarding this matter" in a letter recently.

They haven't asked about the value of the estate, whether there's any money, who the executors are, nothing...

My question is, even if we get no further communication regarding this, and we sell the house and bring money into the estate, should we still make an effort to settle this debt? Even if they don't chase it up?

Last thing I want a couple of years down the line is an old creditor chasing me and the other beneficiaries for money...!!

Note that I am aware of the need to post in the Gazette re creditors.

Thanks.

Yorkshireman99

monkeysrevenge wrote: »

Hi all,

Further to my other thread re my mother's passing recently, I have contacted a debt management company who she was paying £xx per month back to as part of an old debt.

There will be money in the estate following the house sale, but it sounds like the company are planning simply write the debt off - and we're talking over £6k outstanding.

They haven't explicitly said they would write it off, but they did write "no further contact shall be made regarding this matter" in a letter recently.

They haven't asked about the value of the estate, whether there's any money, who the executors are, nothing...

My question is, even if we get no further communication regarding this, and we sell the house and bring money into the estate, should we still make an effort to settle this debt? Even if they don't chase it up?

Last thing I want a couple of years down the line is an old creditor chasing me and the other beneficiaries for money...!!

Note that I am aware of the need to post in the Gazette re creditors.

Thanks.

As executor you are obliged to settle any debts that are due from the estate. If in doubt you must keep the funds for six years from when the last acknowledgement of the debt.

monkeysrevenge

Yorkshireman99 wrote: »

As executor you are obliged to settle any debts that are due from the estate. If in doubt you must keep the funds for six years from when the last acknowledgement of the debt.

Thanks for your reply Yorkshireman99.

Does this still apply even if they claim they would be writing it off? To be fair, as closest next of kin I just googled the name of the company I saw on mums bank statement to advise them; I have no paperwork at all stating how much is owed, only a figure given over the phone.

Is it our obligation to be forthcoming and ask creditors to give us paperwork, or is the onus on them to do so and "prove" the debt, so to speak?

I'm not trying to be difficult, but if a company is willing to write this off / not chase a debt, then surely it's their own problem?

Thanks.

Yorkshireman99

It is tricky because debt collecting companies are notoriously untrustworthy. The onus is on them to prove the debt. If they are willing to write the debt off then as long as they tell you in writing there should be no problem.

theoretica

Debt management companies may not be the people to who you actually owe money - they may collect it and distribute it to the people who are actually owed, and as such don't own the debt to write it off.

monkeysrevenge

Thank you both for your replies.

The notice is now in the Gazette and awaiting details from creditors.

Probably a case of "wait and see" if there is a claim against the estate from this debt company.

jackyann

In a completely different situation, I had contact from an institution claiming that I owed them money, 5 years and 11 months after I had purchased a service from them.
I was able to point them at evidence that the bill was paid immediately, and that the issue would have been between them and the agency that paid it.

However, it made me aware that you can be chased for bills for up to 6 years, and I do think you need to cover yourself. Could you get legal advice by taking the letter to your local Law Centre or CAB?

monkeysrevenge

Hi

Just to follow up on the above (sorry for long delay in replying, sorting house etc.).

The gazette notice has been placed, but I was wondering if it mattered that probate hasn't been granted yet? It's expected in the next fortnight, but the "clock is already ticking" if you like. Does it matter that the notice has gone in before probate is granted? Does the clock restart on the grant of probate?

Also re the debt, I should clarify when I said "letter" it was actually an email (typo, sorry) that was sent in response to me emailing them a copy of the death certificate.

This all came about as I just googled the company name on mums bank statement to advise of her death; I have no idea really what any debt owed is actually all about... Just that there is apparently a debt of some sort!

As I am not an executor (a third party is, I am just closest next of kin who dealt with the immediate things after death) should I advise the executor about this potential liability? Or again, should the creditor be the one to make contact with the executor?

I know it sounds like I'm just trying to keep the money in the estate, rather than repay... but I don't feel the executors should be the ones chasing down creditors, when it's surely on them to reach out to the executors in response to the gazette notice...

To confirm; we have no written correspondence or notice of an outstanding debt. Just a figure quoted over the phone in response to advising them the account holder had passed away.

Thanks

unforeseen

To me it sounds as though the debt management company are washing their hands of it because there is nothing to manage any more, since I don't think the estate can take over the DMP.

It will therefore be up to the creditors themselves to take this any further with you.