Do debts die with a person without assets?

[Hickory Dickory]

Might seem a bit of a strange question, please bear with me.

 

I had a DRO back in 2013, I got myself into a lot of trouble.

November 2019 the DRO came to an end and a week later my bank, TSB, whom most of my £15k debt which was written off through the DRO, contacted me and said "Hi Hick, would you like a credit card?"

 

"Erm, ok, clearly I'm a great risk, but your computer says great, so ok yes please...."

Boom, £10k credit card!

 

I've tried hard in the last year since then, but nothing's really changed.

My hatred for the banks is still the same, my dislike of my own life is unchanged.

 

if I were to buy £9,000 worth of gold bars from royal mint and give them to my nephew on the strict instruction to keep them to himself, then wait a few months whilst I'm making minimum monthly repayments on credit cards.

 

If I were then to "die", - with a proven death certificate and evidence of cremation of my old bones.

Would my nephew get to keep the gold?

 

Sorry if this seems a bit of an odd question, however a lot of posters here seem to know their stuff

I'd appreciate insight.

 

My hatred for TSB runs deep.

Cheers,

HickD.

 

[stu007]

Hi

 

It would be better if you explained your issues properly as to what has happened with TSB from start to finished to give us a clearer picture to be able to assist you.

 

When did the DRO start and finish?
 

[Ethel Street]

The general rule is that debts don't die when the person dies. They become debts payable from the deceased person's Estate and the Executors/Personal Representatives have a duty to pay those debts out of the assets of the deceased person. If the Estate is insolvent, the debts exceed the assets, then of course the debt can't be repaid. Neither Executors nor family are personally resposnible for paying the debts of the deceased from their own money. If the  Estate is insolvent there are rules about which creditors get priority etc.  That's just a broad overview, not legal advice. There can be many more complexities.

 

There's a big BUT though in the situation you describe. Creditors are able to challenge gifts given away in your lifetime if they believe the gift was made to avoid debts to creditors being paid from the Estate. So creditors might be able to recover the gold bars. I have no personal experience of this and don't know the detailed rules or how it works in practice. You'll need to do more research.

[Homer67]

This post is concerning as your mindset seems to be 'no you, no debt'.

 

Please do not consider financial debts as huge issues, they can be easily overcome and will not have an adverse effect on the rest of your life.

 

There are rules about gifting finances so you wil need expert advice on buying bullion and gifting it.

 

Many people have been in very dark places in their lives and debt can cause that, but it is something that is easily overcome with the right advice, which you will get on the pathway to here.

 

Give us the details of your debts and we'll go from there.