Statute barred debt for a deceased relative.

LavenderKuromi

Sad News. My family member passed away last Monday. When I visited him a couple of weeks ago, I found a debt to MBNA for around £16k for an account opened in 1997. He had very bad dementia and he has debts to water, electric, council tax and this credit card. As a single occupant vulnerable person, he should not have been paying for council tax, and the water and electric should have been at a reduced. Electric is estimated and on that basis the debt is £6k+.

His Will and Executor are in Australia, so the solicitor may not be aware of UK Statute Barred Laws. I obviously cannot question it with the DCA, but he can, I think.

Should I send the solicitor all the information for a Prove It letter and hope it can be sorted that way?

Any other advice re these debts after this sad death would be very helpful.

elsien

If he has no assets, there is nothing for them to chase. If you know the executor, then yes, pass it all onto them.

The debt may not be statute barred if he’s been making payments in the meantime, but if the estate has no money to pay it with it then it’s academic anyway.

He may have qualified for free council tax with the SMI impairment but I don’t think that can be claimed in retrospect, but just out of interest,why do you think electric and water should have been reduced?

LavenderKuromi

https://forums.moneysavingexpert.com/discussion/comment/82001947#Comment_82001947

Social services looked into it and asked for the bills to be looked at again as he was classed for many years as a vulnerable adult who couldn't manage his financial affairs. Sadly, social services messed me and him about so I never managed to get Deputyship before his death. He was left without hot water and heating for around 6 years whilst social services faffed about. Water company said they would reduce the debt but sadly as he hadn't paid for years they couldn't help.

He does have finance but I know for a fact the CC debt hasn't been paid in over a decade.

With regards the council tax, he was a single occupant on a pension. I spoke to the council and they said they would not send in bailiffs but his social worker needed to confirm everything. He never did and neither did the following 3 social workers. He was seriously let down by social services.

la531983

Does he actually have any assets in the estate?

LavenderKuromi

I really just wanted to ask how to challenge the CC. He may have a asset but it's currently in a trust and it's in the hands of his solicitor as it's very complicated.

la531983

https://forums.moneysavingexpert.com/discussion/comment/82002061#Comment_82002061

Yes but the point being made is why go to that effort if there are no assets to start with, be worth finding that out first of all before busting a gut.

Also are you getting confused about how statute barred works. Has he actively been paying the debt off? Has the debt been chased? The fact the debt is from 1997 isnt relevant in its own. It depends on a number of factors.

LavenderKuromi

https://forums.moneysavingexpert.com/discussion/comment/82002086#Comment_82002086

I already answered this. Nothing has been paid or admitted for over a decade for the CC. And that he may or may not have assets, so we don't know. However, I am fully aware of Statute Barred debts and how they work. But I can send the right letters for me, not for someone else who is deceased.

la531983

Fair enough, personally I would be ascertaining if assets existed first before going down the SB avenue.

Good luck

sourcrates

In this country, any debts of a deceased person are not automatically exempt under the limitation act.

Instead, the deceased`s liability to repay a debt transfers to their estate, provided the estate is not insolvent.

If the estate is insolvent, the debts must be paid in priority order, a credit card debt would be last on the list for settlement, and if sufficient funds are not available to settle it, it just doesn't get paid.

If funds do exist, you can by all means claim its statute barred status, most of the time they will not pursue such debts.

ManyWays

In addition to the statute barring, the executor can also ask for the CCA to be produced.

LavenderKuromi

https://forums.moneysavingexpert.com/discussion/comment/82002281#Comment_82002281

That's sort of what I wanted to know. Thank you for clarifying this.

A further question. What if probate has been completed, and for arguments sake the house trust means it's an asset, but not been sold, how would this situation work?