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Debt following death

Hi, I’m looking for advice please regarding the outcome of debt / loans following death ... my father has obtained approval from Black Horse Finance to purchase a static caravan worth £20k. He has done so by using my mums details who has dementia and is 79 years old and receiving a carers allowance. When we discovered this he then changed the loan into his name and was also given the same credit for £20k based over 7 years. My father is 80 years old, with chronic liver failure and alcoholic hepatitis. Our concern is that when he passes away we will be left with the debt even though he had been told by the caravan salesman that the debt would die with him. I’d appreciate it if I anyone could clarify if this is correct or if they have experienced something similar? Many thanks 

Comments

  • The debt will be settled from his estate, if any.

    You don't inherit the debt.
  • Why in heck does your Dad want a caravan at his time of life?  
  • phillw
    phillw Posts: 5,630 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    DebDerosa said:
    Our concern is that when he passes away we will be left with the debt even though he had been told by the caravan salesman that the debt would die with him. 
    Debts only die if you have no money. So if he has nothing then it's ok, if he has £20k or less cash sitting in an account that you thought you were going to inherit then you will miss out.
  • sourcrates
    sourcrates Posts: 30,636 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    As above, debt does not transfer person to person, only the person who signed the agreement is liable for the debt.
    On death, if there are sufficiant assets to pay off the debt, then that`s what the executor would do, debts are settled in order of importance.
    An unsecured loan for a caravan would be last on the list to pay, if there are not sufficiant funds to do this, then the debt does not get paid.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Flipping hell - surprised that anyone would give him a loan in those circumstances 
  • DebDerosa said:
    We were all very surprised too, this had happened without our knowledge and the caravan salesman had completed the paperwork knowing that our mum had dementia. I spoke with him yesterday and after pointing out that not only is this fraudulent but also immoral, the finance agreement has now been cancelled. 
    Very good but has the order for the Caravan itself been cancelled ?
  • MEM62
    MEM62 Posts: 5,124 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    DebDerosa said:
    We were all very surprised too, this had happened without our knowledge and the caravan salesman had completed the paperwork knowing that our mum had dementia. I spoke with him yesterday and after pointing out that not only is this fraudulent but also immoral, the finance agreement has now been cancelled. 
    Have you also reported the matter to the FCA? 
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