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Subject: Deceased Debtor with an estate

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debsbaker
Posts:111

23-10-2007 11:56 PM	Alert
I have been approached to sort out debts for a deceased lady whose property has been placed into an estate. Her only creditor was Halifax with a £8000k loan with a credit current account balance of £2500. Obviously, Halifax want money from the estate to repay the credit card. However they are not aware that the ex-husband has enduring power of attorney and the property has been left to him. Has anyone ever done a full & final settlement on a deceased debtor before? Have approached the gent to see if you wanted a quick sale on the property aswell.

Kind Regards Debbie Baker Tip Consultancy - Financial Recovery Specialists 07790 533884

Dementoid
Posts:191

24-10-2007 2:00 AM	Alert
..........any debt left over will have to be paid off from the deceased's estate, unless the card was held in joint names when the survivor assumes responsibility for the debt. However, card companies will review their decision on a case by case basis and in exceptional circumstances may simply write the debt off. This will usually be the case if the remaining balance is a small amount or the deceased left nothing in their estate.

Johnny Debt
Posts:256

24-10-2007 2:05 AM	Alert
I think in this particular case, I would wait and see if the creditor comes chasing after the debt. If they do chase, then we would have to look at the other options.

Johnny Debt 07870 492521 Follow on Twitter https://twitter.com/JohnnyDebt

Suzy
Posts:51

16-01-2008 10:59 AM	Alert
I recently phoned a couple of companies regarding a personal situation on the above. A credit card company with £8k on it were willing to write off the debt if the person dies. A loan company (for an unsecured loan of approx £15k-20k) said they would try to recoup the loan from the estate or put a second charge over the property if the money wasnt "available". Obviously it depends on the company and type of debt. I imagine a quick sale is unlikely, as he is likely to lose more than £8k doing this. If Halifax arent prepared to put a second charge on the property then it's likely to still be negotiable. OR get a friend to put a charge on the property for the full market value - then Halifax wont have a leg to stand on!

Suzy Evans

StressRelief
Posts:2

16-06-2008 7:24 AM	Alert
I thought that if there was nothing left to gain from the estate that the deceased family would have the debt passed on to them. However, it is true that certain quantities of debt will get written off in these cases.

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