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    • Fbert
    • By Fbert 9th Nov 18, 5:49 PM
    • 3Posts
    • 0Thanks
    Fbert
    Debt recovery sale of house
    • #1
    • 9th Nov 18, 5:49 PM
    Debt recovery sale of house 9th Nov 18 at 5:49 PM
    Hi
    A husband and wife were in receipt of income based ESA and unfortunately were overpaid due to a pension income of the husband not being declared.

    He died five years ago, and debt recovery sent a letter demanding payment from the estate. There was no money in the estate, only their property that they lived in which passed to the wife automatically as they were joint owners (not tenants in common).

    When informed of this, debt recovery decided not to chase the debt. However the wife has since lost the paperwork and cannot remember what exactly was said.

    She is now looking to sell the property and would like to know if DWP debt recovery are likely (or able to) chase for the overpayment on the sale.

    We have checked the title deeds and there is no charge listed apart from the original mortgage.

    Also the benefit claim was in the husbands name not the wife’s (although of course they received the payment for a couple). So now that the property belongs to her, can they demand repayment of his debt following the sale?

    If anyone has experienced a similar situation we would be very grateful for advice.
Page 1
    • antrobus
    • By antrobus 9th Nov 18, 6:49 PM
    • 16,220 Posts
    • 23,082 Thanks
    antrobus
    • #2
    • 9th Nov 18, 6:49 PM
    • #2
    • 9th Nov 18, 6:49 PM
    ...

    She is now looking to sell the property and would like to know if DWP debt recovery are likely (or able to) chase for the overpayment on the sale. ....
    Originally posted by Fbert
    The DWP could apply for an insolvency administration order to recover the debt from the deceased person's share of the property. But that has to be done within five years of the date of death.

    https://www.nationaldebtline.org/EW/factsheets/PDFs/dealing-with-debt-when-someone-dies.pdf

    So if the husband "died five years ago", she can safely ignore the hypothetical debt.
    • Fbert
    • By Fbert 9th Nov 18, 6:52 PM
    • 3 Posts
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    Fbert
    • #3
    • 9th Nov 18, 6:52 PM
    • #3
    • 9th Nov 18, 6:52 PM
    Thank you for your reply.
    The death was 26th nov 2013 so I guess she should hold tight for 17 days!
    • Fbert
    • By Fbert 9th Nov 18, 6:54 PM
    • 3 Posts
    • 0 Thanks
    Fbert
    • #4
    • 9th Nov 18, 6:54 PM
    • #4
    • 9th Nov 18, 6:54 PM
    Also is there any way to check if an insolvency administration order was applied for? Would check her paperwork but it is lost ��
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