debts after death - advice needed

ChillyP

sourcrates said:

ChillyP said:

We spoke to one of the creditors half an hour ago. We still don't have the death certificate so they couldn't go through the entire process, however the person on the phone explained that if there are no assets, the debt will likely be written off.

That is the usual course of events with most consumer credit debts, I went through the same thing myself last year with my Brothers debts after he died.

He had a bit less than 10k on various credit products, and it took one letter to each lender for them to write it all off, no questions asked.

Just because a legal framework exists, it doesn't mean it always get used, oh, and his funeral was £3500, which is pretty standard nowadays, and yes, that is paid from his assets before any other debts.

Thanks Sourcrates, 

I appreciate you taking the time to post x

ChillyP

It’s been straightforward so far. Still waiting to hear back from the bank who provided the Loan. Really hope that they aren’t going to be difficult. This us the biggest singular debt at £5200. 

ChillyP

Hi, 

Sorry to post again....

The credit card providers have been good and it looks as though the debts will be written off, however the bank ( TSB) where the loan in held are a bit trickier. I appreciate that they may just be trying to see if we pay up!

I am mithering over this a bit, so thought I would post again....

As this debt is over 5k, is there more of a chance that they could attempt to apply for an insolvency administration order? Would a debt of 5K warrant this, or would their costs make it unviable?

sourcrates

I've seen banks write off mortgage shortfall debts of 80k plus in similar circumstances, I don`t think a loan of 5k will be much of an issue.

They could apply for one, also you could win the lotto tonight, a lot of things could happen, But I seriously doubt they will do as you fear.

Marmelete

I am in a situation where my brother died interstate and in debt. I am his only beneficiary and administrator of his affairs. He had a bank loan of around £2500 and he owes around £250 in over payments since his death. I have recovered some money by selling his car £700 and that went into his current account. I have recovered the deposit from his flat £825 and an tax rebate £260 in my account. However I have paid out money for house clearing £400, a month's rent while I cleared his flat £725,  a wake £600, and flights as I live abroad. Am I entitled to any of the money in the current account to cover my expenses before the other debtors and the bank loan. Thank you

sourcrates

Funeral costs, and other costs associated with dealing with his estate are priority debts yes.

Anything left over from his estate after these costs have been paid, should be made available to his creditors.

Debt are paid in priority order, you should also check and see if there were any insurance policies for the deceased.

National Debtline explains the process here:

Debts after death | National Debtline