DEBT! Parents debt :( please help

[timetostartbeingme]

Hi, my father passed away last year. It's been so hard coming to terms with it. Especially since we've found out he had debt.

It probably totals to around 15k over different accounts such as credit cards.

It's being dealt with, most debt companies have written it off after seeing there's not enough money in his account to pay it. I think it's all being consolidated and then obviously everything he has in his bank can go towards them and anything else can be written off.

However, I've just spoke to a very intimidating man at a debt company (I've never had debt so it's so confusing for me!) he said that my dad had a house then asked if there's a Mrs x.
Surely they can't come for the house? I brought it alongside my parents and now I assume it is in mine and my moms name.

I'm so stressed, I've just found out I'm pregnant and just can't cope. My brother has been amazing he's sorting it all I'm just so worried my mum will become involved who's very vulnerable.

Can they come for the house? How would that work? We haven't got the cash to make payments

Sorry for the long post going out of my mind!

Not much advice other then to say . Email don't call these people. Tell them you want everything in writing for your records. They will say anything to scare you into paying .
Also contact cab the are brilliant at advice .

the house is part of you father's estate.
you need legal advice.

sorry for your loss.

unless the debt is secured against the property then it’s highly unlikely that they can. Debt collectors are bastards. They are intimidating deliberately to make you panic and pay them by whatever means necessary.

Did you / your mum / your dad own a third of the house each? If so, I would assume that 1/3 of the house classes as his estate and can be used to pay off debts.

I would get legal advice.

I wouldn't engage with them at all. Keep all communications but don't answer phone calls don't respond to letters or emails. You are not liable for your father's debts which means anything you own cannot be used to pay them off.
However debt collectors like this will try to intimidate you into believing otherwise.

He did own it, the three of us brought it it's since been paid off and now I assume my mum and I own it. No loans secured against the house as far as I'm aware

Whether you and your mum now own it depends on how ownership was set up in the first place. Please don’t assume anything, take some legal advice.

what kind of debt is it? Was it secured against the house?

I would advise you to get legal advice.

It depends a bit on how the house was held by your parents (joint tenants or tenants in common). But the advantage of getting legal advice and appointing a solicitor is that they will contact the debt collectors and then any further correspondence from them you can simply direct to your solicitor to avoid stress for your mum.

Did he leave a will? If he didn’t leave a will then it would normally be his spouse who inherits, so your mum would own 2/3 and you still your original 1/3.

I think you need some legal advice about your situation, separate to the debt question.

You can't "assume" anything here. You need to understand 1) the nature of the debts in question, 2) the ownership structure of the house (joint tenants? Tenants in common?).

Were you “joint tenants” or “tenants in common”? It makes a difference. (Not a lawyer so not going to give my view as there are so many actual experts on Mumsnet but that is definitely relevant info.)

and sadly debts don't die with the person, debts die after the estate has been dissolved.

did he have a will?
who is handling probate?

1/3 of the house is in your fathers estate, they can insist that you use this asset to pay the debt. Talk to either step change or CAB , it may be worthwhile coming up with a deal so you don’t have to sell your house.

www.stepchange.org/debt-info/bereavement-and-debt.aspx#:~:text=Unsecured%20debts%20are%20normally%20written,not%20handle%20the%20estate%20properly.

Get legal advice about the house and speak to Citizens Advice or National Debtline for advice about the debt.

How much is owed to that particular company?

Thanks for your comments. How could we use the house to pay if my mum is living in it ? :(

The debts around 7k

No will, myself and my brother have dealt with everything

• raise a mortgage
• a perdonal loan
• sell the property

you need legal advice.

Please don't do anything until you have spoken to CAB, or another reputable agency who will assist you. Many credit card companies will write off a small debt if there are no actual funds, ie money in a bank account to pay off the card. Try to talk to the credit card company direct and not any other person. Tell them exactly what you have said here, or enlist the aid of CAB etc. Don't panic.

Get some legal advice ASAP. I wouldn't think they could come after the house is the loan is not secured against it

OP, get a free half hour with a solicitor or Citizen's Advice..

How the house was owned, and whether the debt was secured against the house are both relevant.

You need legal advice. Take the paperwork related to the purchase of the house, and any paperwork related to the debt with you.

Do not talk to the debt company. You have informed them that your father has died. Wait until you've spoken to a solicitor. If they ring you, tell them to put their communication in writing and then hang up.

If you do need to raise the money, you'll be able to get a small mortgage or a personal loan. Try not to worry.

The key question is whether the deeds for the house have your dad and mum and you as :joint tenants" or "tenants in common".

If you are all joint tenants then the house is not part of the estate . On your father's death the property became instantly the property of just you and your mum and the debt collectors have no claim on it.

If you all tenants in common (owning specifically assessed percentages of the property) then your dad's share does form part of the estate and his heirs cannot inherit until all debts either paid off or written off by the lender.

That probably means you and your mum will need to take out a small loan to buy your dad's share from the estate, pay off the debts and pay back the loan asap.

If your dad's debts were more than the value of his assets then anything over and above his assets has to be written off, your mum and you cannot inherit debt, but you can't inherit assets when there are debts outstanding. The only exceptions are in the case of a joint tenancy where it's not considered an inheritance, and money in joint accounts which similarly beongs to the other account holder(s) now and are not inheritance.

You need to see the original loan agreement and to look at the house deeds - if the loan was secured by the house then it may be that his "share" needs to pay the debt, but again all depends on ownership (tenants in common vs joint tenants) too. Gather us much paperwork as you can find and look specifically if the loan is secured by the house, if so you will probably need to speak to a solicitor

@timetostartbeingme you need to answer the question! whose name(s) are on the deeds? not just who paid for it! if the house was not put up as collateral for that loan and is in joint names, then they cannot take money from house. did he leave a will?

Surely a loan could not be taken out on the property without the express consent of all parties? If it's owned by the OP, her mother and late father then all would have to consent?

Unsecured debts mean they can't come for the house, so try not to worry.

Definitely speak to a debt adviser with CAB or similar.

Debt companies inc. banks will often give out incorrect 'advice' so speak to a professional independent debt specialist.