FabSwingers.com forum: Debt after death! Advise please.

By (user no longer on site) OP
over a year ago

I always was lead to believe that upon death all debt that person had dies to. Whilst sorting out my brother's finances after his recent death, we found with relief a policy he set up for his funeral. However he also had a debt on a credit card and the bank insists this has to be settled.

My question is this. Can the bank legally demand family members to pay this debt? Any advise gratefully received. Many thanks in advance

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By (user no longer on site)
over a year ago

If he has any assets - cash in the bank, a house etc - then yes.

If he has neither money nor assets - then no, as it's an unsecured debt and will be written off.

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By (user no longer on site)
over a year ago

[Removed by poster at 09/01/14 12:57:18]

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By *rumCoupleCouple
over a year ago

birmingham

"I always was lead to believe that upon death all debt that person had dies to. Whilst sorting out my brother's finances after his recent death, we found with relief a policy he set up for his funeral. However he also had a debt on a credit card and the bank insists this has to be settled.

My question is this. Can the bank legally demand family members to pay this debt? Any advise gratefully received. Many thanks in advance"

Unless a family member guaranteed the debt then the bank have no recourse to them.

HOWEVER, they can petition the estate of the deceased for the debt, and the executors would be obliged to repay it if there is enough money in the estate.

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By (user no longer on site)
over a year ago

I believe if he has any money left in his estate, I E house Car Cash insurance policy etc then they are within their rights to seek repayment, Some companies may waive the owed money as a good will gesture but depends on the amount id assume, but they are legally entitled to it.

I dont think they can persue you for the money if you were not part of the debt agreement, only if any of his money came into your hands.

Probably best to go to Citizens advice for proper advice though

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By (user no longer on site) OP
over a year ago

Just want to say thankyou for all your advise. Thankfully the funeral policy money is safe so we have just found out. As he was a bit of a loner and didn't have savings etc and no other assets I can't see what they can do.

Thanks again guys.

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By (user no longer on site)
over a year ago

If there is no money you don't have to pay. My hubby died 2yrs ago and had lots of cards an hp,in his name.... They tried they failed,,,, as there was no money in the estate,,the money he has left is for you to bury him and should be used as such,,

Sorry for your loss

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By *ranny-CrumpetWoman
over a year ago

The Town by The Cross

Pay any debts or outstanding payments

Once you’ve contacted all the organisations, pay off any debts the person had. This could include:

outstanding bills

tax owed

As the executor or administrator you have a legal responsibility to pay off any debts or outstanding payments before distributing the estate. You can use money from the estate to pay any solicitor’s fees as part of the probate process.

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By *ranny-CrumpetWoman
over a year ago

The Town by The Cross

Taken from this site : https://www.gov.uk/browse/births-deaths-marriages/death

It's the site we used when my husband died in October.

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By *igSuki81Man
over a year ago

Retirement Village

Sorry to hear about your loss and glad you managed to get it resolved. I was under the impression that personal debt that is not secured is lost upon someones death. So if your brothers debt was not secured against his estate eg a mortgage, then the bank would have to write it off.

But you got it sorted so hopefully you will be able to give the funeral without worrying about the evil finance world

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By (user no longer on site)
over a year ago

Credit card company not shook there are after their cash. Put everything in writing and send it recorded delivery as well.

I had a problem with some over the internet video card I got from a well know shop. They sent me the wrong one. I sent it back and after 30 day they not even said they had it back. after a letter no reply I sent a letter my credit card company who said there was nothing they could when they call me over the phone. I had to fight to get them to pay up it took a long time as well.

If they call ask for the name and where they work then ask for what they are saying to be put in writing first.

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By *reelove1969Couple
over a year ago

bristol

Going back a few years now when a family member died ...i wrote to all credit cards advising that there was no money in the estate to settle any outstanding credit card bills or the likes and enclosed a copy of the death certificate ...no company contacted us again regarding the matters other than to respond sorry about your loss and we will close the account

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By *ranny-CrumpetWoman
over a year ago

The Town by The Cross

Companies may not bother chasing small amounts BUT the Bank and The Tax Man will make sure they get theirs.

It'll bite someone on the arse.... don't forget the bank KNOW how much money is in accounts.

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