Deceased Unsecured Debt

PasturesNew

The debt dies with her. Not your debt. This is the norm and part of their business calculations - they expect to have some unpaid debts due to unexpected deaths.

Many years ago my friend had her nanna living with them.... and when she died they found her chair STUFFED with overdue debt letters... my friend said "Wish I'd known; I'd have ordered something"

Samie104

Hi,
So sorry to hear about your mums illness, all the above advise is correct, I’m in the similar spot, but did it wrong.
So as long as you pay the funeral
Costs etc, all the remaining life
Policy’s must be paid to them, ours was joint so different.
The time you have is so precious now, enjoy every moment with her.

Sending you all my thoughts

Samie

18cc

Hi Katie I had exactly the same problem and the procedure is to do nothing until your mum unfortunately dies at which point you will get a death certificate and your brother as executor will deal with the affairs

your brother needs to contact everybody your mum owes money to tell them your mum has died and asked them to supply a final bill

your brother then has to wind up your mother's estate and pay things like funeral expenses and outstanding taxes etc

any money that is left has to be equally divided between all the creditors if there is not enough left to pay everybody than that is the end of the matter simply notify them and the debts will be cancelled

fwor

----<bump>---- (Please ignore this)

Tammykitty

18cc wrote: »

Hi Katie I had exactly the same problem and the procedure is to do nothing until your mum unfortunately dies at which point you will get a death certificate and your brother as executor will deal with the affairs

your brother needs to contact everybody your mum owes money to tell them your mum has died and asked them to supply a final bill

your brother then has to wind up your mother's estate and pay things like funeral expenses and outstanding taxes etc

any money that is left has to be equally divided between all the creditors if there is not enough left to pay everybody than that is the end of the matter simply notify them and the debts will be cancelled

I though standard advice was don't touch an estate that is in debt?

Silvertabby

“ Hi Katie I had exactly the same problem and the procedure is to do nothing until your mum unfortunately dies at which point you will get a death certificate and your brother as executor will deal with the affairs

your brother needs to contact everybody your mum owes money to tell them your mum has died and asked them to supply a final bill

your brother then has to wind up your mother's estate and pay things like funeral expenses and outstanding taxes etc

any money that is left has to be equally divided between all the creditors if there is not enough left to pay everybody than that is the end of the matter simply notify them and the debts will be cancelled
Originally posted by 18cc

Tammykitty wrote: »

I though standard advice was don't touch an estate that is in debt?

It is. Assuming that there is no money left after the funeral has been paid for, it's sufficient to just write to each company (with a copy of the death certificate) advising of the death, and making it quite clear that as the estate is insolvent there is no executor.