repaying a loan - can an offer be made ?

poppyred

Silly question i know but i am paying off my late brothers debts from his estate and have £15,500 left to pay 3 loan companies (all banks):-

£15,000
£12,000
£9,000

is it best to phone them all and make them an offer for me to repay a bit of each or do i pay just one and tell the other two that the Estate has no further funds to pay. can you make loans companies an offer ?

CLAPTON

if you are acting as executor you MUST pay each creditor fairly.

if all other expenses are paid, funeral, utilities, council tax and any other taxes etc etc

then you must prorata the debts i.e.
the 15,000 gets 6458
the 12,000 gets 5166
the 9,000 gets 3875

make sure there are no other debts

poppyred

CLAPTON wrote: »

if you are acting as executor you MUST pay each creditor fairly.

if all other expenses are paid, funeral, utilities, council tax and any other taxes etc etc

then you must prorata the debts i.e.
the 15,000 gets 6458
the 12,000 gets 5166
the 9,000 gets 3875

make sure there are no other debts

Many Thanks, do i just phone them and tell each one how much i have left and offer them the figures you have given me e.g 6458, or do i write to each one, do i send them a copy of the executor account ? sorry to ask to these questions, just want to mke sure i'm doing it correctly.

jonesMUFCforever

You need to do it in writing.
Yes show them the balance on the account and how you have worked out their share.

I take it there was no PPI on any of the loans?

pa49

It's worth remembering that you are acting as the responsible person handling someone else's money. You have a responsibility to deal with each debt in an equitable manner, but they can't get more than is available in the estates "pot"! You can only offer each creditor the same percentage "share". Whether that be 100% or 25%.
Explain this in writing and they should be amenable to whatever there is for each of them.