Outstanding Loans for late husband

Single23

Dear Members,

I am a widow and have a disabled child, my husband passed away year and half a go now, i am unable to work due to my son being disabled, There are outstanding loans that my husband owed when he sadly passed away that still needs to be paid back, since he had a house which had enough equity at the time of his death, i paid of the outstanding mortgage and transferred the ownership of the house on my name since i had to secure roof above my head, however other loans that my husband took are still outstanding, loans were on his name only and not joint, however i understand still has to be paid since there was enough equity in his estate. I am currently receiving Universal Credit, so was wondering what would be best way to pay of the debts? and i have tried all loans have to be paid in one go and can not be monthly instalments i was told by the creditors. I was thinking to take loan on my name and pay of the debt? or release equity from the house? what impact does that have on universal credit? are we allowed to take loan while on UC? what options do i have? appreciate your help, Thanks

sourcrates

Hi,
If the funds from his assets have been used up then the other creditors are just out of luck.

If the funds are not there in his estate, then no one is liable for the debts that were in his name only.

The companies will write them off, once informed in writing.

Single23

sourcrates said:

Hi,
If the funds from his assets have been used up then the other creditors are just out of luck.

If the funds are not there in his estate, then no one is liable for the debts that were in his name only.

The companies will write them off, once informed in writing.

Overall there were enough funds to pay all debts but would have had to sell the house to release the funds, i decided to pay off the secured debt i.e the mortgage, so technically not all funds/assets have been used up. i hope that makes sense? Thanks

sammyjammy

OP has also posted on Benefits board, it would seem house was only in husbands name.

sourcrates

In that case you would need to take advice from a solicitor who works in this area, probate board may be helpful.

I’ll move this for you.

Single23

sourcrates said:

In that case you would need to take advice from a solicitor who works in this area, probate board may be helpful.

I’ll move this for you.

Thank you, any advice would be great.

Single23

Anyone can help please?

xylophone

Your husband was the sole owner of a mortgaged property?

 His other debts were unsecured.

He had savings.

You obtained Probate/Letters of Administration, used his savings to pay off the mortgage and then transferred the property into your own name?

The property is now in your sole name and mortgage free. 

Your husband's unsecured debts are still outstanding and his creditors are pressing for payment because his estate was not insolvent.

Your only income is from benefits as your child's disability makes it impractical for you to work.

Have you tried a debt charity for assistance?

https://www.stepchange.org/



 

Single23

xylophone said:

Your husband was the sole owner of a mortgaged property?

 His other debts were unsecured.

He had savings.

You obtained Probate/Letters of Administration, used his savings to pay off the mortgage and then transferred the property into your own name?

The property is now in your sole name and mortgage free. 

Your husband's unsecured debts are still outstanding and his creditors are pressing for payment because his estate was not insolvent.

Your only income is from benefits as your child's disability makes it impractical for you to work.

Have you tried a debt charity for assistance?

https://www.stepchange.org/



 

You are absolutely correct above, indeed i paid from savings as i wanted to secure the house and did not wanted to move out with my son. I have not contacted any debt charity yet, is it worth contacting them? Thank you 

xylophone

I have not contacted any debt charity yet, is it worth contacting them? Thank you 

Worth a try to see if a repayment schedule can be negotiated.

DairyQueen

I have great sympathy for you OP. I think you should seek a solicitor's advice. Many offer an initial short consultation FOC. Also, CAB could be helpful.

Did your husband die intestate? If so, did you apply for administration and follow the rules of intestacy? Did you apply for probate? Alternatively, if he had a Will were you the named executor? Were you and/or your child the sole beneficiaries?

The rules of intestacy are clear and you are entitled to the first £270k of the estate (after debts and expenses) and a lifetime interest in 50% of the balance. The remainder belongs to your son.

Your circumstances are difficult and I understand why you took the actions you did. However, in doing so you have effectively taken ownership of assets that you have no right to. This isn't your money - it belongs to your husband's creditors and I will be very surprised if they don't pursue you doggedly as there are sufficient assets in the estate to pay them.

Was there a life insurance policy? This would be the norm for a mortgaged property. What about your husband's pensions? Death in service benefits?