Deceased credit card debt

[Gleavey]

My fahter recently died, leaving credit card debts. He left me the house, but I have no funds to cover the debts, only the house which I live in. As I was his carer for four years, I was unemployed during this time. Am I still legally due to pay off the complete debt owed?

[R1Geezer]

no, debts die with the debtor, assuming of course they where wholly his debts.

[Ethel]

Debts DO NOT die with the debtor, if the debtor had assets when he died.

They HAVE to be paid out of his estate. This may mean selling the house if you cannot find any other way of raising the money to pay the debts.

[slark]

i would just write on the back of the envelope not living at this address, now deceased. if you have already had contact with them have a chat with your local CAB office they will be able to help you.

[Oneeyedvic]

as Ethel correctly states, debts do not die with the debtor if he has an estate (which he does - the house)

That said, a lot of credit cards have life insurance as part of their services (Barclaycard certainly used to).

You need to contact the credit card company (presuming that you are the Executor) and explain that he is deceased. Ask them if there is a life insurance policy in place.

If not, explain that your father did not leave any savings, just a property to you. Ask if you can pay this back at a low rate (say �5 per month). Interest should be freezed.

[Ethel]

A person can only bequeath what he owns.

That is assets - liabilities.

The credit card company will not let this drop - the executor of the will has a legal duty to pay all debts before distributing the rest.

[Oneeyedvic]

Dishonest I know

Yes, and fraudulent.

Turning a civil matter into a criminal act.

[Gleavey]

thanks for all your answers so far, doesn't look too good though :) What if I offer a payment as a settlement, obviously not the full amount as I do not have that. I just don't want to sell the house to pay off a debt, its been my home all my life.

[Ethel]

Gleavey - has the estate been dealt with properly? Probate? Executor? Tax?

I imagine this debt is a small per centage of the house's current value - can you raise a secured loan? Is the house now in your name?

What has happened so far?

[Gleavey]

Yes, probate and tax have been sorted, I am the sole executor, and only have a few hundred pounds to my name.

[Gleavey]

And I'm awaiting the deeds to the house to be sent so I can change the name.

[Ethel]

I can't believe he left only the house.

Furniture, clothing, books, collectibles, tools, car, electrical goods, everything - all form part of the estate - everything he owned.

As sole executor you are legally responsible to ensure the debts are paid. And please don't try the 'not known at this address' - the credit card company will know he owned his home and will dig deeper.

TALK to the credit card company, explain the situation and try and come to an arrangement, if you are not prepared to sell the assets to pay the debt (as you are legally obliged to do)

[factor-fiction]

Ethel is right. IgnoreTriggerhappy. If the credit card debt is worth chasing the cedit card company will be able to find out teh value of the estate and will know who the executor is- and a executor you are legally liable for the debts.
The only way round it is to relinquish all rights to the estate.

[Lindylou]

Credit card companies are known to chase debts but if you don't have the money to repay and its not your debt in the first place then don't worry. They will not force you to sell the house. Explain the deceased's estate is only the house (your home) and no funds. Offer to repay (at an extremely low amount - say �5 per month). Tell them to freeze the debt (i.e. no more interest). If they don't agree then just don't do anything at all. They will write to you threatening all sorts. Ignore them or tell them to take you to Court. Judges/Registrars will be in your favour. They don't particularly like credit card companies - especially with the interest rates they charge. I'm sorry if this answer offends all those righteous persons out there who think that the debt should be paid. If they feel that strongly then let them pay it. Its not your debt. I wish you luck!

[Ethel]

The fact you are the EXECUTOR of the will makes you legally responsible for this debt. Had a third party been the executor, such a solicitor, then he would have made sure it was paid before the house was transferred to your name, or sold the house if there was no other way.

It is a criminal offence for an executor to avoid the liabilities of the deceased. Paying the debts is a legal obligation of the executor and any claims will be against you, not as Gleavey, but as Executor or Gleavey's Father.
http://www.willyouever.co.uk/executor.asp

[factor-fiction]

Well said Ethel. Maybe she and I sound a little righteous but we are simply setting out the legal position regarding an executor's responsibilities.
However I think LindyLou's strategy of explaining things to the credit card company, asking for interest to be frozen and maybe offering to pay off in small amounts may work, provided it can be shown that the estate consisted only of the house and no cash, savings or liquid assets whatsoever.