Car finance issue following family death

BoGoF

Tell them that you will be using option 5 - returning the car and that they can seek any funds from the estate. However as there are no assets then there is nothing to give them and the debt will have to be written off.

Keep_pedalling

Karenhoward23 wrote: »

I’ve never used this forum before so sorry I’m not directly replying to everyone under your message (if you can that is)
The house and bank accounts were in their joint names but he has now been taken off when we called to inform everyone of his death. Bank accounts / the house etc are now only in Mums name..
The funeral was last Monday and it hasn’t been paid for yet. As there was no savings or funeral plan in place, we as a family are trying to pay it and the funeral directors have been very supportive in not chasing immediate payment and are allowing us to pay in instalments.
As for the settlement figure I don’t know what he was thinking when he agreed to buy the car as the APR is 16.9%. He only put a £1k deposit down and also agreed GAP insurance. I can’t see an early settlement penalty, sadly it’s more the ridiculous APR etc. The dealer have wiped their hands of it (I hoped because we rang the day after they would be sympathetic and help) and the finance also weren’t helpful and just sent me a letter with the 4 options.
Thank you all again - I’m massively grateful

Thanks for the clarification. If it had not already been done make sure any payments to do with this loan from what was their joint account is stopped, you mother is not liable for them.

That interest rate is high, but it should not add £3000 to the dept owed. Regardless of how much the dept is there is nothing in his estate to pay it. The safest option is to write to them informing them that the estate is insolvent, and that there is no one administering the estate. Tell them that they are welcome to repossess the car as final settlement.

Technically you could sell the car, pay the funeral costs, and pass what’s left to his creditors. This would mean you have to administer the estate which is something you should not do without taking legal advice.

Malthusian

Keep_pedalling wrote: »

Technically you could sell the car, pay the funeral costs, and pass what’s left to his creditors. This would mean you have to administer the estate which is something you should not do without taking legal advice.

The costs of paying a solicitor to adminster the estate would however take priority over the debt. So if the sale of the car would cover taking legal advice after paying for the funeral costs it could be worthwhile.

The OP can arrange an introductory meeting with a solicitor and ask them whether it's feasible without risking intermeddling.

The OP should check whether the stepfather had any pensions or insurance policies if she hasn't already. Even a small pension from a brief period of employment makes a difference in this situation.

McKneff

You still havent answered the question about how the house was owned or have i missed that

Malthusian

You missed it.

The house and bank accounts were in their joint names but he has now been taken off when we called to inform everyone of his death. Bank accounts / the house etc are now only in Mums name..

I.e. joint tenancy, now sole name after Dad's death.