Kids responsible for parents debts ?

Lula-Hula

Hello all,

just a quick question before i start my own debt free wannabe diary :

Had my lightbulb moment back in March & started serious budgeting beginning of April with an almost immediate effect .
I'm now considering trying to reclaim the £980.00 :mad: that I've paid for a payment break plan on my barclaycard - current balance £3,780 -

I took out the plan mainly because the sales person told me that in the event of my death, my children (then aged 3 & 15) would become responsible for paying off any amount owing :eek:

Does anyone know if this is a legal fact ?

It now sounds most unlikely to me that a minor could be made responsible for a deceased parents debt, but at that time i had recently become a single parent & frankly the idea of my children having to pay horrified me so i agreed .

I've checked out the templates on reclaiming charges but do not want to pursue if the sales person was right, & risk Barclaycard getting sniffy with me. I'm currently managing to overpay the debt by my own mananagement & hope to have cleared it by September 2010.

Any advice / experience / knowledge on this matter would be greatly appreciated,

Thank you

lula

ifonlyitwaseasier

your estate would be liable but if you didn't have anything then no they cannot make your children pay.

Broken_hearted

I'd be fuming debts do not get passed on to your children, the person who told you that should be fired.

Clariman

That is a shocking sales tactic. As others said, debts do not get passed on to children - not even adult children. However, any debts owing would be paid for out of your 'estate' i.e. the value of any assets that were left when you died (e.g. your house, any savings and other assets). It means that children could inherit less if a parent died with debts. However, if you have not assets when you die then the debts get written off.

Clariman

di7868

Hi Lula
I worked in a job where this phrase was banded round a lot to potential customers. The other half of the phrase (which is the 'silent' part and never spoken by sales staff) is that it would come out of your estate.
So rather than making your children pay it it would come out the total amount your children would inherit. Sales staff like to miss the silent part to make a hard hitting comment to get at your weaknesses like your kids and family. :rolleyes:
Reclaim reclaim reclaim :rotfl: (if you get any objections just quote misselling at them!!)
Hope your ok hun
Di
xx

Waspeze

I was "sold" a loan from HSBC a good few years ago and was talked into buying their payment protection thingy as else if anything happened to me my parents or brother would have become liable

RAS

Waspeze

Ditto - they would get less from your estate, but they would not have been liable if your estate had too little money to pay off the debt.

Waspeze

RAS wrote: »

Waspeze

Ditto - they would get less from your estate, but they would not have been liable if your estate had too little money to pay off the debt.

And, as mentioned earlier, that's the crucial part of the "sales pitch" that is never (or hardly ever) mentioned!!

Well, my "estate" is out of my hands now.

RAS

Lying barstewards.

No point in reclaiming the PPI now, but I would think a stiff complaint to the OFt would still be in order.

You may not be thinking that far ahead at the moment, but it is something to bear in mind for the future - post ED?

Waspeze

Hadn't thought of doing that .. how would it work with the loan and payment protection included in BR? ... would I be able to claim a percentage of the PPI back relating to the payments that I did make? Soz, not clued up with this process!!

RAS

Waspeze

Unfortnately, once you are BK, the OR is entitled to anything you get back in the way of PPI and charges. So it would go to pay your creditors, probably including the company who sold you the PPI?