Writing to creditors which were being paid off on minimal amounts per month

BooBoo77

Hello, I'm acting as executor for a friend of mine and he had a number of credit card debts which had gone to debt collection agencies and other debts that he was paying off at less than £5 each month.  I don't know the details but am hoping that they might agree for reduced settlements.  What is the best way to write to them initially.  Should I just state the fact that he's died and give my details as the executor and wait for them to get in touch?  He has a flat which I will sell when I can but it will all take a while.  I'm also in the process of applying for probate. Thank you

bobster2

BooBoo77 said:

Hello, I'm acting as executor for a friend of mine and he had a number of credit card debts which had gone to debt collection agencies and other debts that he was paying off at less than £5 each month.  I don't know the details but am hoping that they might agree for reduced settlements.  What is the best way to write to them initially.  Should I just state the fact that he's died and give my details as the executor and wait for them to get in touch?  He has a flat which I will sell when I can but it will all take a while.  I'm also in the process of applying for probate. Thank you

As executor you need to collect information on the value of all debts. So you need to contact them to find out this information.

If the estate is solvent - with a property to sell (which is presumably worth more than all the debts) - I wouldn't expect them to accept reduced settlements.

Keep_pedalling

I would just write to them informing them of the death (include a copy of the death certificate), and that you as executor are applying for probate. Ask them for a final account.

As you need to apply for probate the value of the estate will become a public record so it is unlikely that they will except a reduced payment but there is no harm in asking.

BooBoo77

Thanks so much Bobster and Keep Pedalling for responding.  I will write to those I know about straight away.  I'm also going to put the advert in the Gazette once probate comes through to see if there are any more that come to light.  

Hoenir

BooBoo77 said:

  I will write to those I know about straight away.  I'm also going to put the advert in the Gazette once probate comes through to see if there are any more that come to light.  

The advert should placed before probate is applied for. Will speed matters up. 

BooBoo77

Thanks Hoenir.  I hadn't realised that.   I will look to do that as soon as possible.