Recently discovered that parent has a lot of debt - where do I stand?

stanleyman

I recently discovered that my Dad is in a lot of debt. He lives alone in a council house and hasn't been paying his council tax or rent, and has been ignoring reminders from the council. He also has a lot of credit card debt, but keeps transferring the balance between different cards rather than paying it off, and he has accounts with companies like Very which he can't afford to pay off. It's possible that he has more that I don't know about.


He gets very defensive if I try to talk about it, so there's absolutely no way he's going to do anything about it. As he has very little income, there's not much he could do even if he wanted to.


He's in his 60s and has several health problems. He really doesn't look after himself so I'm well aware that he may not be around in a few years' time.


What will happen to his debt when he dies? Will the council, credit card companies and stores start pursuing me? I have a sibling, but I'm the oldest and to be honest my sibling has inherited his lack of ability to manage money. I have a decent job and save some money for a rainy day, but I have a mortgage and family, and suddenly getting landed with thousands of pounds debt would destroy our finances. My wife is very concerned about it, as she's getting worried that we'll end up having to sell our family home through no fault of our own.

[purplesignup][/purplesignup]

Comms69

stanleyman wrote: »

I recently discovered that my Dad is in a lot of debt. He lives alone in a council house and hasn't been paying his council tax or rent, and has been ignoring reminders from the council. He also has a lot of credit card debt, but keeps transferring the balance between different cards rather than paying it off, and he has accounts with companies like Very which he can't afford to pay off. It's possible that he has more that I don't know about.


He gets very defensive if I try to talk about it, so there's absolutely no way he's going to do anything about it. As he has very little income, there's not much he could do even if he wanted to.


He's in his 60s and has several health problems. He really doesn't look after himself so I'm well aware that he may not be around in a few years' time.


What will happen to his debt when he dies? Will the council, credit card companies and stores start pursuing me? - OBVIOUSLY NOT. I have a sibling, but I'm the oldest and to be honest my sibling has inherited his lack of ability to manage money. I have a decent job and save some money for a rainy day, but I have a mortgage and family, and suddenly getting landed with thousands of pounds debt would destroy our finances. My wife is very concerned about it, as she's getting worried that we'll end up having to sell our family home through no fault of our own.

Perhaps you both should go do some very basic research online.

BrassicWoman

You won't take on his debt - anything in his estate goes to pay it, and no more.

But I'd be more worried about his eviction. Rent has to come before catalogues!

Pollycat

stanleyman wrote: »

I recently discovered that my Dad is in a lot of debt. He lives alone in a council house and hasn't been paying his council tax or rent, and has been ignoring reminders from the council. He also has a lot of credit card debt, but keeps transferring the balance between different cards rather than paying it off, and he has accounts with companies like Very which he can't afford to pay off. It's possible that he has more that I don't know about.


He gets very defensive if I try to talk about it, so there's absolutely no way he's going to do anything about it. As he has very little income, there's not much he could do even if he wanted to.


He's in his 60s and has several health problems. He really doesn't look after himself so I'm well aware that he may not be around in a few years' time.


What will happen to his debt when he dies? Will the council, credit card companies and stores start pursuing me? I have a sibling, but I'm the oldest and to be honest my sibling has inherited his lack of ability to manage money. I have a decent job and save some money for a rainy day, but I have a mortgage and family, and suddenly getting landed with thousands of pounds debt would destroy our finances. My wife is very concerned about it, as she's getting worried that we'll end up having to sell our family home through no fault of our own.

There's a similar thread running about giving financial support to parents who have been profligate.

What will you do if your parent is evicted?

Is he claiming any benefits that he is entitled to receive?

-taff

Council tax and rent are priority payments, forget about the credit cards.
Council tax is the one thing that can get him sent to jail if he ignores it, Eviction will follow if he fails to pay his rent.
Contact stepchange with regards to all other debts, they are non priority.

Primrose

Any debts your father leaves on his death will die with him. His creditors may try and chase you for money owed but you have no legal responsibility for paying them and should refuse to get involved with them.

However as has been pointed out, if he does not pay his council tax and rent he will be liable for eviction so you need to get him to the point where he pays these, even if you have to,loan him the money. If he is in severe ill health and not good at coping with finances, can I suggest you discuss taking out a financial Power of Attorney for him and get him to agree that you take over the handling of his financial affairs. You could then perhaps start negotiating a repayment plan and ensure that his most important financial liabilities are paid. This will not make you on any way legally liable for his debts, whether he is alive or dead but may give you some reassurance that his financial affairs are being brought back under control if he is incapable for whatever reason of taking responsibility for this himself.

Sea_Shell

Have you considered there maybe mental health issues at play here too.

Although it doesn't sound like he'd be happy to see GP either.

eamon

As much as you want to help there is a limit to what you can do and in no particular order.
Should your Dad die in debt then so does the debt if there is no estate to claim from. So dont worry on that point.


He is at risk of being evicted from his home for non rent payment and possibly prison for non payment of council tax. He (and more likely you) will need to make contact with his housing providor and start the discussion.

You say he is unwell, is he working? on benefits (which ones and I hope its not Universal Credit)? Your Dad needs to tell you all this for you to understand 1) his health & 2) his income.

When you have all the above you really need to speak/get referred to a debt counsellor/advisor. Then you can plot a way forward but I would prioritise his housing first and deals with the debts much later.

Savvy_Sue

If he's very firmly head in sand, the OP may not be able to do very much for Dad.

However, one thing I think the OP can do is make contact with Dad's Housing Officer. The HO can't discuss dad's rent arrears with the OP without Dad's permission, BUT flagging up to them that there are ill health and possible mental health issues may lead to more support being offered, in a way which Dad finds harder to refuse.

For example, there may be a huge element of embarrassment, and reluctance to allow an adult child to tell you what to do. A visit from the HO pointing out that the council is about to start the eviction process may concentrate his mind.

Paparika

Comms69 wrote: »

Perhaps you both should go do some very basic research online.

Stop being an !!!!, they are here asking for advise.

pickledonionspaceraider

Sea_Shell wrote: »

Have you considered there maybe mental health issues at play here too.

Although it doesn't sound like he'd be happy to see GP either.

I was just going to say the same thing Sea Shell. Bad money management and subsequent burying of head in sand, along with lack of self care, are real indicators of this being the case but only the OP will know

Council Tax, in my experience, chase any debt far too harshly.

I know someone who moved house and, the first correspondence they had from council tax was a court date saying they owed £70. The money was paid straight away and court averted, but I do not understand why they (the council tax dept) go in with the big guns and set court dates over a small amount, as opposed to sending a letter in the first instance - and then if that is not actioned by the bill payer, take it further