Elderbridge

Marbel

Help

My partners family appear to have a large debt with a company called elderbridge (70-80k). They lost their house approximately 3 years ago and live in council accommodation.

The house sold for about 40k below market value but elderbridge appear to still be pursuing a large debt. We have found numerous letters from them about the debt which we are guessing have been ignored.

Given that the property was repossessed and sold for way below value, can they continue to chase the family for the debt and what would happen when both parents pass away (both pensioners).

Neither of them have any money/savings and are both on state benefits including housing benefit and council tax benefit for the property which they currently reside in.

CIS

Given that the property was repossessed and sold for way below value, can they continue to chase the family for the debt and what would happen when both parents pass away (both pensioners).

Those who owe the monies would be responsible for any remaining shortfall in payment of the debt.


If they died the monies would be a debt to the estate to settle - if there was insufficient monies in the estate then the debt would not be enforceable against other family members who did not personally owe the debt.

fwor

Marbel wrote: »

Given that the property was repossessed and sold for way below value

The property would almost certainly have been sold at auction, so in that case it's not true to say that it was sold below market value - it was just that nobody else in the auction room was willing to bid any more for it. This is generally what happens with "forced sales" - they typically won't fetch as much as if they were being sold normally.

Unfortunately the answer is yes - if the property did not settle the debt once expenses and other charges on the property were paid, then the lender can continue to pursue the outstanding amount.

As already said, when they (assuming they are jointly liable for the debt) pass away, the debt will need to be settled out of the estate - which if they have insufficient assets simply means that the remaining debt will, in effect, die with them.

diggingdude

you likely won't get any inheritance but parents are unlikely to be able to repay this debt so suggest to them that they just get on with their lives

sourcrates

Basically, they can`t take what they don`t have, large shortfall debts are always a gamble for any collector, most people don`t have tens of thousand of pounds hidden under the bed, so most debts of this type go unpaid.
The worst that could happen here is elderbridge take them to court, and they pay £5 a month for the rest of their days (or a figure that is affordable) based on the parents circumstances, its unlikley any further action would be taken, if they have no money or assets, then its a pointless excercise.


As far as their estate would be concerned, the debt is treated just the same as any other unsecured debt, if, after funeral expences, and any other priority debts have been paid, there wasn`t sufficiant money left to pay the debt in full, it would not be paid, its as simple as that, unsecured debts are bottom of the pile for payment no matter how much the debt is for.

twhitehousescat

and any other priority debts have been paid, there wasn`t sufficiant money left to pay the debt in full,

can you clarify that please (curiosity)

if the debt is many K , but after funeral costs etc there is say £28.50 left . can they claim that?

Ps who tells the debt co that they have died ? if no obvious paperwork is at hand

just curious

Gaz83

twhitehousescat wrote: »

and any other priority debts have been paid, there wasn`t sufficiant money left to pay the debt in full,

can you clarify that please (curiosity)

if the debt is many K , but after funeral costs etc there is say £28.50 left . can they claim that?

Ps who tells the debt co that they have died ? if no obvious paperwork is at hand

just curious

In theory, yes, they can claim that £28.50. Whether or not they would is another matter altogether but they can claim it if they choose to.

It's the executor's responsibility to inform any creditors that a debtor has passed away.