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Insolvent Estate Help Gain
there will be a very smll amount in the estate (less than 1k after basic funeral). Once the creditors have been identified, is there an order of priority? seeing as there wont be enough to pay everyone, would it just be a cse of splitting the 1k pr0portionaltely, or equally?
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Some advice here. https://www.
17:47 Sat 17th Sep 2016
From the Money Advice Service,
"Step 3: Pay in priority order
Once you have probate or grant of administration, you can use the money in the estate to pay off the debts that aren’t covered by insurance. Paying the debts first is more important than distributing the estate to the heirs.
You should pay off the debts in this order of importance:
Secured debts, such as the mortgage.
Reasonable funeral costs and the costs of administering the estate.
Unsecured debts, such as credit cards, utility bills, unpaid rent, Council Tax and other taxes, and repayment of overpaid benefits.
If there are assets, such as a car or a house that if sold, could go towards paying off the debts, it’s an option worth considering.
If there are more debts than the estate can pay back, this is called an ‘insolvent estate’. In this situation, it is best to seek the advice of a solicitor or a probate specialist.
Find a solicitor or probate specialist on the Law Society website"
"Step 3: Pay in priority order
Once you have probate or grant of administration, you can use the money in the estate to pay off the debts that aren’t covered by insurance. Paying the debts first is more important than distributing the estate to the heirs.
You should pay off the debts in this order of importance:
Secured debts, such as the mortgage.
Reasonable funeral costs and the costs of administering the estate.
Unsecured debts, such as credit cards, utility bills, unpaid rent, Council Tax and other taxes, and repayment of overpaid benefits.
If there are assets, such as a car or a house that if sold, could go towards paying off the debts, it’s an option worth considering.
If there are more debts than the estate can pay back, this is called an ‘insolvent estate’. In this situation, it is best to seek the advice of a solicitor or a probate specialist.
Find a solicitor or probate specialist on the Law Society website"
i find it really odd there doent seem to be more help out there (in general, not ab)- surely insolvent people are more likely to have insolvent relatives (otherwise they would have helped them when they were aloive probably), and therefore far less ability to pay for the advice of a solicitor.
They are all unsecured debts, all in smallish amounts but together adding up to more than the assets
They are all unsecured debts, all in smallish amounts but together adding up to more than the assets
I agree, it's all rather vague, but from my link......
//If there is insufficient money to completely clear the debts in one category money should be paid to each one in proportion to the money owed. //
So presumably whatever monies are left and you've reached the 'unsecured category' you'd have to split between each debt.
//If there is insufficient money to completely clear the debts in one category money should be paid to each one in proportion to the money owed. //
So presumably whatever monies are left and you've reached the 'unsecured category' you'd have to split between each debt.
sorry for your loss if he is a relative bn
funeral comes first
usually the debts are all unsecured with small estates
you do a pence in the pound calculation - if all the debts are £8000 and he has £1000 then that is 12.5 pence in the pound
( not that if there are five debtors they get £200 each - they get 12.5p for each pound owed)
just write to them and include the cheque
I prepared formal accounts but no one ever asked for them
no money is no money and it doesnt pay a debtor to start any inquiries as it is unlikely to lead to a pay out
it is important to identify ALL the debtors because the ones left out get nowty later on. The one I did paid out zero.
funeral comes first
usually the debts are all unsecured with small estates
you do a pence in the pound calculation - if all the debts are £8000 and he has £1000 then that is 12.5 pence in the pound
( not that if there are five debtors they get £200 each - they get 12.5p for each pound owed)
just write to them and include the cheque
I prepared formal accounts but no one ever asked for them
no money is no money and it doesnt pay a debtor to start any inquiries as it is unlikely to lead to a pay out
it is important to identify ALL the debtors because the ones left out get nowty later on. The one I did paid out zero.
yes advertise but that is an allowable cost ( comes under testamentary expenses which is the one after funeral costs)
clearing up an estate like this is an unpleasant duty
I did mine in 16 wks
the only questions were from the other relatives who felt entitled who wanted the thruppence ha penny on his dressing table [ debts die with the man you see so we want the cash from his wallet ] and I invited them to contribute to the cost of the funeral
clearing up an estate like this is an unpleasant duty
I did mine in 16 wks
the only questions were from the other relatives who felt entitled who wanted the thruppence ha penny on his dressing table [ debts die with the man you see so we want the cash from his wallet ] and I invited them to contribute to the cost of the funeral
I may be daft but would not getting a solicitor just mean the solicitor makes sure he/she gets paid before anyone else does, meaning even less for creditors ?
A situation that involves the two biggest 'legalised robbers' known to mankind ,Funeral directors and solicitors, should be avoided at all cost!
A situation that involves the two biggest 'legalised robbers' known to mankind ,Funeral directors and solicitors, should be avoided at all cost!
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