What happens when someone dies with debt?

[DoNotsAntlers]

Scenario: Someone has passed away with credit card and utility bill debt which cannot be settled by the cash assets they have.
What happens?

Do the material assets have to be sold before execution of the will to repay that debt? TBH this may not actually cover the debt. Then what happens?

Does that debt get written off?

Does that debt get transferred into someone else's name (there is no spouse/partner/children to pass it to)?

Afaik, it cannot be transfered.
If the assets are not up to much, it will just getr written off I think?

If there is no way to pay the asset from cash, household items such as jewellery or proceeds from the sale of a house then it will be written off. It cannot be transferred to another family member.

All debts must be paid out of the estate prior to distribution to beneficiaries. So if there is little or no cash, but a house or other assets, these will have to be sold to realise the cash. Debts are then paid and balance distributed. If there is still insufficient money to pay all debts, the remaining debt dies.

The only assets are furniture and small electricals.....it is a rented proprty...there are no significant valuables.

Will "we" have to sell teh assets to raise the cash or will the credit companys sell them/reposess them - or will they reposess them? We think that the outstanding balance will be about £1Kish.

The longer this goes on the more rent that will have to be paid on the property - the bigger the shortfall to the CC company...

It does depend a little if they can get the social fund to pay funeral expenses (unlikely)

The credit card company will want to see Confirmation (if in Scotland) or Probate (if in England and Wales). Once they have looked at that and established that there is no money (sometimes they will accept a letter from a Solicitor explaining this) they may well write it off.

You won't get much for furniture and small electricals.

Why are you still paying rent? If the property is empty and you have advised the landlord/council then you should be able to remove the posessions out.

Also check to see if the person had payment protection if so then they'll need to see a death certificate and then it will be written off.

My Mum's friend's son's (with me so far?) partner died of cancer aged 37- after she had died they discovered she had gone beserk with the credit cards in the last year of her life and owed about 30 grand. It was all wiped clean. (not sure if this would happen if they had been married)

There has been no funeral yet - so still paying rent until at least then as we won't touch the possessions until after he has been laid to rest....even then there is no-where to put the furniture until the will is executed and as I understand it the will cannot be executed until the debts are settled.

I think it is only a DIY will (it is a friend of a friend so don't know all the nitty gritty details) so there is no solicitor involved at this stage.

My parents are going to try and sort out what teh CC company want to to do today and whether there is any payment protection insurance. Unlikely as the deceased was a pensioner with no income from employment so payment protection would have been worthless to him in life IYSWIM.

And if this was taken into the hands of teh solicitors who would pay for that....