Ms Gooner 1

So sorry to bother you all (again)

But as most of you know my dad passed away recently - which has left a few "questions"!. Namely, about 2 years ago my dad took out a personal loan - think it was for about 5k - payable over 36 months!

Anyway - long and short, it wasn't secured on the house and was in his sole name but he didn't take out any insurances against life/sickness etc.

Obviously the bank has been advised of his passing - but my mum is worrying herself silly over how she's going to be able to afford the re-payments.

Am I right in thinking that if you die - your debt dies with you. He owned 50% of the house they live in - his 50% has now gone into trust until such time as my mum sells or passes away herself - in which case, his "share" will be passed into beneficierys!

Will she liable to pay his debt? The bank in question (Halifax) haven't made up their minds - as its been 4 weeks since he died and my sister notified everyone of his death - but still they've not responded???

pezzza

Well to put the record straight....you DONT owe any money.

My dad died about 18 months ago, and he also has a personal load with barclays bank, which my mum was worried sick over cos she could not pay it.

We went to the bank, and after seeing the manager, we was finaly told the debt would be written off.

Personal loans are just that, if you die, the lender CANNOT ask anyone else to pay the money back, unless they had their signature on application.

Hope this helps.....

P.S. sorry for your loss.

TonyF

Sorry for your loss.

But....

Unless the law has changed, your mum may still be liable for any uninsured debts. In truth, unless the Halifax see a substantial amount in your mum or dads accounts (which they see as a way of recovering the monies) they will proberbly write the debt off.

I found this when my 1st wife died and I discovered she had several maxed out credit cards!

A recent article here may give some insight:

Debt after death

Hope that helps.

Ms Gooner 1

Think my dad had 2 bank accounts - but both of which were joined with my mum - so the banks would be unable to take anything out of those - she already knows that.

But she's so worried over this debt - the only "asset" my dad had - was the house, which was co-owned with my mum in a "severed tenancy" way - they were advised to do this because it meant that each of them would own 50% - and as I said - my dad's percentage is now in trust. The only way i can see is if the bank put a charge to my dad's share - which as i was unfortuante enough to find out myself - that IS possible and that no "personal" debt has to remain.... soley personal LOL.

Just wish they'd hurry up and put her out of her misery - well,,,,, some of it anyway

TonyF

Banks never rush unless theres a profit in it!

Contact them again by letter and state that the worry is causing your mum upset, lay it on thick....They will proberbly right the debt off. They are pretty good with berievment...they just are sooo slow, because no one is prepared to make a decision, in case they get into trouble.....address it to the head office, they have more control than the branch manager.

lorrainecallison

I will pm you about this later.......we need to catch up anyway