Credit Card ridden estate HELP!

[exec101]

Further to my other thread (Old GM card) we have the less than pleasant task of dealing with my deceased mother's estate. She had a LOT of credit cards and appeared to be using them to borrow cash to pay the others and not actually spending on them. Obviously at typical 30% cash APR's the initial debt (long since paid) has ballooned out of all proportion and may significantly exceed her life insurance and assets. The problem is section 421A (I think that’s right) of the insolvency act which seems to state they could make dad liable for up to ½ the value of the house if the estate is declared insolvent! OK the debt isn’t that much but its big enough to need a mortgage to pay it.

She died without a valid will so my father is in the final stages of obtaining probate as we speak. We don’t know anything about these cards of debts so is it reasonable to CCA her card companies as the estates executor? But in any case we would need “signed” copies of the agreement to confirm the debts exist so how do we go about that and what time frames would be reasonable as the creditors are getting a little twitchy since probate has taken a long time because of the complications with finding the will.

 

Thank you for taking the time to read this

 

exec101.

[Guest Old_andrew2018]

Bump

[cerberusalert]

You would be as well sending a SAR to the cc companies with a view to obtaining the CCA, also it will give you the oppurtunity to discover what unfair charges had been added to her a/cs which you can reclaim as a debt owing to her estate. This should reduce the alleged debt significantly.

 

As for her creditors getting 'twitchy' that's tough on them they'll have to wait whilst the executors bring the estate into order, which in some circumstances can take some years.

[cerberusalert]

Also another thought, was there any PPI on these cards, if so the insurance should cover the debt because of death.

[diddydicky]

Further to my other thread (Old GM card) we have the less than pleasant task of dealing with my deceased mother's estate. She had a LOT of credit cards and appeared to be using them to borrow cash to pay the others and not actually spending on them. Obviously at typical 30% cash APR's the initial debt (long since paid) has ballooned out of all proportion and may significantly exceed her life insurance and assets. The problem is section 421A (I think that’s right) of the insolvency act which seems to state they could make dad liable for up to ½ the value of the house if the estate is declared insolvent! OK the debt isn’t that much but its big enough to need a mortgage to pay it.

She died without a valid will so my father is in the final stages of obtaining probate as we speak. We don’t know anything about these cards of debts so is it reasonable to CCA her card companies as the estates executor? But in any case we would need “signed” copies of the agreement to confirm the debts exist so how do we go about that and what time frames would be reasonable as the creditors are getting a little twitchy since probate has taken a long time because of the complications with finding the will.

 

Thank you for taking the time to read this

 

exec101.

 

unless someone on here has specialised knowledge of probate law i would strongly advise against giving advice on this one

 

i really think you need to speak to a solicitor on this one!

[cerberusalert]

Creditors cannot take any action whilst the Estate is in Probate. The whole idea of Probate is to allow the Executors to put the Estate in order, evaluate the amount of the Estate and pay creditors. There is a strict pecking order among creditors and Banks, credit cards & other unsecured debts are most definitely at the back of the queue when it comes to payment.

[diddydicky]

nevertheless!!