Bereavement- mortgage and debts

[red.ninja13]

Hello, I’m wondering if anyone knows the answer...

 

My father passed away this month, we can’t find a will so I’m currently going through the probate process to try and deal with everything.

 

so far it seems the money in his account will pay for approx 2/3 of his funeral. 

 

There is a life insurance policy which would cover around 3/4 of the mortgage

 

There is approx 20k of credit card and store card debt.

 

I was thinking of selling his Van and then spreading the funds for that to go against his debts,

but I’m wondering if I will be forced to sell the house to pay these credit card debts?

(A house i currently live in) 

thanks 

[dx100uk]

simple answer is you are NOT responsible for the consumer credit debt..

it has an outstanding mortgage to get paid off and there is thus no equity to even distribute....

so forget about the consumer credit debt ..they can all go whistle.

 

top priority is to get the mortgage paid off.

is their also any insurances like life & PPI on the mortgage agreement?

 

dx

 

[red.ninja13]

I found a life insurance policy which covers around 3/4 of the mortgage and my brother and I should be fine to get a mortgage for the remaining balance.

 

I was just worried we’d have to sell the house to pay off the credit cards/store cards.

 

No PPI I know of, he’d recently gone through and put claims in against them all and for refunds.

[dx100uk]

are you named on the deeds or mortgage?

i'e legally living there?

 

if its not your home its part of the his estate.

but no consumer credit debtors of a deceased person cant force a sale no..

 

[red.ninja13]

No I’m not on the deeds, I’m just his next of kin, and there’s no will.

 

Can I be forced to use the life insurance to pay them rather than the mortgage? 
 

thanks for your help

[honeybee13]

A mortgage would be a secured debt, are all the other ones unsecured?

 

You might find this useful from the Money Advice people.

 

https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

 

HB

[Ethel Street]

Sorry to hear about your father.

 

As next of kin you have no personal liability or responsibility for his debts, not for consumer credit debts or any other sort of debt (not unless you had been a joint borrower or guarantor, which I assume is not the case here). But the debts don't disappear on his death, his Estate is still liable for them. 

 

It sounds like you are applying to the Probate Registry for Letters of Administration appointing you as Administrator to your father's Estate (sole Administrator, or jointly with your brother?).  (Administrator is what you are called instead of Executor if there is no Will). If you are appointed as the legal Administrator of your father's Estate then, as Administrator, you do have legal duty to pay all the debts of his Estate, including credit cards, but only so far as your father's Estate has sufficient assets to pay all his debts. If there aren't enough assets in the Estate to pay off all his debts then his Estate is insolvent and you don't have to make up any shortfall from your own money.

 

It appears that your father's Estate may be insolvent. His debts - mortgage and credit cards - are greater than is assets. Is that what you have calculated? If it insolvent you, as Administrator, have to comply with certain rules about settling debts. Have a look at this

 

https://www.bereavementadvice.org/topics/probate-and-legal/insolvent-estates/

 

You'll also need to check who is entitled to inherit the Estate as your father died without a Will (died 'Intestate'). Probably shared equally between you and your brother if you are the only children but you can check here:

 

https://www.gov.uk/inherits-someone-dies-without-will

 

 

[red.ninja13]

Hey guys, sorry for going silent.

I had to take a break from trying to deal with all this.

I’m still upset about losing my father.

 

I’m writing to his creditors and arguing with them and requesting settlement figures.

 

My question is,

isn’t there supposed to be some legislation where creditors should notice you’re not paying off more than the interest they’re charging and stop the account/stop your credit?

 

I want to argue with them that they shouldn’t have allowed his credit cards to get into that state and propose as the majority of the balance is interest to write a lot off. 
 

Thanks 

[AndyOrch]

Why are you requesting settlement figures on credit cards ?   why are you engaging with them at all apart from sending a copy of the death certificate.

 

No estate = No money = no pay and then they will write them off..they have no other option....but you must not make payment from yourself not even the interest.

 

Andy

[red.ninja13]

I found a life insurance policy, so there’s money, I’d rather try and get a settlement figure and pay them out the policy than have them put a charge on the house. I just begrudge using the money to pay that shit instead of the mortgage. 

[dx100uk]

no!!

 

the creditors don't know nor should know that ins exists

they cant put a charge on anything 

 

throw the morality card out the windows

as you say above they did way before the reason why you posted here ever happened.

 

seriously there is nothing they can do.

 

dx

 

[Ethel Street]

11 hours ago, red.ninja13 said:

I found a life insurance policy, so there’s money,

 

 

So is the Estate solvent? ie when you get the payment from the life insurance policy will there be enough money to pay the funeral expenses + all the crdit card etc debts + pay off the outstanding mortgage?

 

Have you been formally appointed Administrator with 'Letters of Administration' from  the Probate Office?

 

Have you submitted the claim to the life insurer? Have they agreed the claim and paid you?