Process of checking and paying debts and DCA.

jay213

My mum passed away just over 6 months ago. I am an executor for my mums estate. I wanted to check the process for dealing with the debts.

I've seen it mentioned to put an advert in the Gazette newspaper (is doing it online the same?) so that companies can come forward.

There are utility bills and things like council tax that must be paid along with other debts. The funeral expenses have been paid for.

We have found letters from different DCA companies such as Caboot, where an old debt seems to have been passed around different DCAs. How do we find out who is entitled to payment and if it is a valid debt as some of the original debts these are for are going back many years?

I've see one or two from DCAs that have offered reductions in the amount that can be paid in the past, I'm assuming that won't be an option now?

Yorkshireman99

Since you already know there may be some debts you need to research those to see if anything is still owing. You need to be careful not to acknowledge the debts that may have become uncollectable because of the six year statutory limitation. The Gazette Notice gives the executor protection against any unknown debts. If a property is involved then a notice in a local paper is also required.

jay213

Yorkshireman99 wrote: »

Since you already know there may be some debts you need to research those to see if anything is still owing. You need to be careful not to acknowledge the debts that may have become uncollectable because of the six year statutory limitation. The Gazette Notice gives the executor protection against any unknown debts. If a property is involved then a notice in a local paper is also required.

Do I just call the companies up to research/ask if money is still owing?

What would constitute acknowledging debts that may be uncollectable?

Yorkshireman99

jay213 wrote: »

Do I just call the companies up to research/ask if money is still owing?

What would constitute acknowledging debts that may be uncollectable?

I would write to each one, heading the letter "Without prejudice" saying that you are the executor and asking what if anything is due. If the debt is more than six years old then don't write. If you want to take a chance then just have the notice published in the Gazette. The notice has to be actuall printed in the London Gazette.

jay213

A quick question, do you think it may be possible to contact some of the DCAs and make them an offer on some of the debts?

Savvy_Sue

jay213 wrote: »

A quick question, do you think it may be possible to contact some of the DCAs and make them an offer on some of the debts?

Before you do that, are you sure that the assets in the estate are enough to cover all these debts? If not, you want to do as little as possible!

jay213

Savvy_Sue wrote: »

Before you do that, are you sure that the assets in the estate are enough to cover all these debts? If not, you want to do as little as possible!

Hi, do you mean just put the ad in the gazette and see if they approach us?

Yorkshireman99

jay213 wrote: »

Hi, do you mean just put the ad in the gazette and see if they approach us?

You really should do this anyway to protect yourself against any claims.Have you looked at my post #4?

jay213

Thanks, another question there are 2 executors, do we both need to be listed in the Gazette as executors for the executors protection? I think I would rather not have my name out there and the other executor does not mind their name going in the newspaper. Will it still protect both of us?

I have been reading further and found out that after you place the notice that they can still come after beneficiaries, we are both beneficiaries along with 4 others. If further debt companies appear after the 2 months limit for claims against the executors, will they want 1/6 share from all of us? or can they try and get it all from 1 beneficiary?

sweenster

Regarding the DCA's per your initial post, i had a very similar situation with my mum. My experience was varied.

One was willing to write the debt off no questions asked (balance just over £1k), which was confirmed once I provided the death certificate.

There were more substantial debts sitting with Cabot though, who passed it to a 'specialist estate collections service' and I had to negotiate with them. What I found after a lot of back and forth and being told different stories, was that ultimately they were willing to take an offer back to Cabot which was then accepted. I offered 30% of the outstanding balance, which was as per numerous offer letters they sent to my mum while she was here. That amount happened to sense, as there is enough cash through insurance policies, to pay that amount and clear the mortgage and other secured debts.

It was pretty difficult though, I only got to that point after speaking to a sympathetic member of staff and explaining that someone lived in my mum's house and that we didn't want to have to sell it and make them homeless. By rights I'm sure they could have pursued it further.

You probably have quite a lot to do before you get to that stage though - like checking the debts are valid (how old, were they being paid) and working out how much the estate can actually pay.

Your last post also seems to allude to making distributions to beneficiaries already, which you definitely can't do until the debts are identified and settled.

jay213

Thanks for the information.. I think I have been backed into a corner with making distributions to the beneficiaries. A few of the beneficiaries and other executor don't think the debts will total to a certain amount, really I can't see them going higher than this rough figure that I'm going to keep back also, but I would rather deal with things the normal way.

The main problem is I have a psycho brother, who as soon as he found out I received the payout went nuts, threatening to attack me, kidnap me and have me set up by dodgy people he knows and hangs with. So it looks a bit better on him he's been demanding everybody gets their money. You can't communicate with him so I had to work it out with his gf as he was pacing around, shouting and making threats.

Beneficiaries have agreed to pay back money if the debts are higher than the figure we are going to keep back (which it shouldn't unless my mum had some secret big debts). Then the money that is kept back will be shared out if there is money left after paying the debts.

For my paper trail, is there a template form or anything that I could get signed, when distributing the money? also, one of the beneficiaries is under 18, I read that they can't accept it or it can't be receipted until they are 18. I believe the other executor/beneficiary wants to hold her money for her.