Credit Card Debt after Death

Travman25

A family member died in February with no assets, they did have two large credit card debts that had already been passed over to a debt collection firm and they had been making small repayments monthly. I have informed both companies that they have died and that the estate is insolvent and there are not even any assets to pay funeral costs. 

A legal firm acting on behalf of one of the debt collection companies has asked the executor of the estate to contact them to discuss paying them back from the estate. 

Any ideas of a sensible course of action. I know I can apply for the estate to be declared insolvent however I suspect this won't be a cheap process. In fact any legal advice seems expensive in this area. 

Do I write to them and explain there are no assets and the estate is insolvent. There really are no assets - just debt. A few personal effects such as clothing etc - the house they lived in was not in their name. 


The amount is 12000 pounds. 

Any advice greatly appreciated 

Brie

If anything you could send the legal firm a very short reply to say the estate is insolvent.  You've already told the collection company so this shouldn't be necessary but it might stop them making a fuss.  Any further queries should be returned unopened marked "deceased, return to sender".  

To be very clear - no one else is responsible for paying these debts.  And no you don't have to provide proof of insolvency.  

fatbelly

Just tell them what you've told us.

If there was no will appointing an executor, tell them that too

Savvy_Sue

And if there WAS a will, and you are an executor, you don't have to do anything as long as you have not 'intermeddled'. 

If no will, tell them "there is no will, and no-one is administrating the estate as it is insolvent." 

If a will, tell them "the estate is insolvent, and the executor of the will has declined to act." Do not tell them who the executor is. 

You don't have to do anything to 'have the estate declared insolvent." It just is. They'll know that if they don't believe you, they'll have to do the work of administration / execution - which they won't bother with. 

Silvertabby

Savvy_Sue said:

And if there WAS a will, and you are an executor, you don't have to do anything as long as you have not 'intermeddled'. 

If no will, tell them "there is no will, and no-one is administrating the estate as it is insolvent." 

If a will, tell them "the estate is insolvent, and the executor of the will has declined to act." Do not tell them who the executor is. 

You don't have to do anything to 'have the estate declared insolvent." It just is. They'll know that if they don't believe you, they'll have to do the work of administration / execution - which they won't bother with. 

This.  And don't let them try to bully you - these people often lie.

When my sister died, intestate and insolvent, I handed her housing association keys back into the HA office.  The clerk expressed surprise at how quickly I had cleared the flat, and when I said I hadn't touched it (my sister had hoarding issues), and that  there was no money in the (insolvent) estate to pay a company to do it, she tried to insist that I, as next of kin, was legally obliged to clear and clean the flat.

Bollx.

Keep_pedalling

fatbelly said:

Just tell them what you've told us.

If there was no will appointing an executor, tell them that too

Agree, just tell them that no one is administering the estate. 

sheenas

I think that I would contact the Credit Card Companies rather than the debt companies and inform the of the situation. Debt companies are complete *** to deal with and I have had great success with the lenders. 

Travman25

Thanks for all the comments - there is a Will that appoints his spouse - sorry should have stated that. But assume that I can just write a brief letter on behalf of the executor or ask them to sign it. 

And if they then ask for proof its insolvent I just ignore it - what would be their course of action if they believed there were assets? 

madbadrob

Brie said:

If anything you could send the legal firm a very short reply to say the estate is insolvent.  You've already told the collection company so this shouldn't be necessary but it might stop them making a fuss.  Any further queries should be returned unopened marked "deceased, return to sender".  

To be very clear - no one else is responsible for paying these debts.  And no you don't have to provide proof of insolvency.  

Your last sentence is in fact not correct.  The executor of a will is required if asked to provide accounts to show that an estate is insolvent.  Otherwise you could just say sorry there is no money and walk off with thousands of pounds.

In relation to the OP I would contact the legal people, explain that you are winding up the estate and that it is clear from your investigations that there is no money in the estate so therefore you cannot pay them anything,.  You say there is no money in the estate to even pay the funeral.  It may help if you contacted the council and tell them that there is no money to pay for this funeral and you dont have the monies to do this and therefore they will need to organise  Puiblic health funeral. This could then also be used to show the creditors of the state of the estate although you of course dont have to.

All in all debts die with the deceased and once you have given them a set of accounts explaining the financials if they continue to contact you contact the law society or any regulatory body associated with the companies.  

Rob

madbadrob

Travman25 said:

Thanks for all the comments - there is a Will that appoints his spouse - sorry should have stated that. But assume that I can just write a brief letter on behalf of the executor or ask them to sign it. 

And if they then ask for proof its insolvent I just ignore it - what would be their course of action if they believed there were assets? 

Didnt see this before I posted. NO you can explain that youre writing on behalf of the executor as they are struggling with the loss of their spouse.  

I also wanted to suggest rather than contacting the agencies go straight to the credit card companies but i suspect that would be pointless as monies have been paid regularly to the agencies but its worth a try

Rob