Which debts die with you?

[Tinker]

Does anyone know? Believe credit card debts have to be paid out of the estate but what if there is no estate? Who, if anyone, is liable?

Anyone?

Cheers ks - got a bit excited then.

DH reckons it depends what life insurance deals you have -- like most endownment mortgages are sold with life insurance. So the mortgage debt would effectively end when you died.

When my mom died the probate lawyer said that creditors had up to some time period -- was it 4 or 6 months? after her death to file a claim against the estate. These claims all had to be processed before the will could otherwise be executed. That's in California, but would imagine something similar ought to exist about deadline for claims against a person's Estate in Britain.

All debts are paid off by the assets of the deceased, and if necessary these assets are sold in order to pay the debts (including inheritance tax if applicable).

If there are insufficient assets (incl life insurance etc) to pay off all the debts then most debts will "die". The rules as to the order in which the different types of debts ie credit cars, mortgages, loans, rent arrears etc are paid are complicated! No partner or relative of the deceased can be chased for the debt. Obviously if a loan was secured against a house or other asset then the proceeds of that asset pay off that particular debt first (or if someone inheirts the house, they also inheirt the mortgage).

The debts which may pass on to others are any that are "joint and several liability" (eg partnership loans), council tax (which passes automatically to spouse), and rent arrears when a tenancy is passed on to someone else. Credit card debts geenrally do not pass on to anyone else. The bank just has to write off the loss.

Does that answer your question?

zebra and 150percent - thanks. It's for someone who is worried tha loan companies may chase him if this should happen. There will nothing left in a will.

When my mum died all her debts died with her as there was only enough in the estate to pay for her funeral. And when I say estate I mean the money that she had in her bank account.

So the Credit Cards, Catalogue bills etc were all written off. I had to write to all the companies and enclose a copy of the death certificate and I think bank statements to prove that there was no money to pay the bills. She didn't own her house so that couldn't be sold to pay off her debts and she was divorced and everything was in her name so that was it. She also didn't have a Will and no Life insurance.

This of course may not apply in England as we are in Scotland.

Cheers Linnet - sames like the same kind of scenario...except it's in England. Actually it hasn't happened, just preparing.

Message withdrawn

When my sister found out her cancer was terminal, she maxed out her credit cards having a simply wonderful time doing all the things she wanted to do before she died. She had no money to leave behind, my parents paid for her funeral.

The had a great time getting her own back on the credit card companies that had caused her grief in the past.

Slug, your post made me both laugh and cry. Your sister sure had style!

My Dad died owing money on a credit card as his estate had been setted, the company have no come back.