The death of a loved one may affect you in all aspects including finance. It does not only impact you emotionally but your well being, plans, and financial state.
Bereavement usually creates circumstances especially on what’s going to happen with the person’s debt and assets. It would be hard for someone to decide on what steps to take during this time. However, remember that help is always available. We provide debt help to help you get back on your feet.
Death and Unsecured Debts
If your loved one passed away leaving unsecured debts behind, you might be wondering how you can deal with these debts. When this happens, the circumstances will depend on the name included in the debt and the ownership or entitlement of the assets.
Debts under the name of the dead person
If debts were under the name of the person who dies, the debts may be:
- written off if the deceased did not possess any assets
- paid if the deceased left an estate like a house, investment, or savings
This means that if the debts are in their name, you wouldn’t be held liable for it. However, if you are left with inheritance, once funeral costs are serviced, the remaining should cover debt payments.
Joint Debts and Death
When you’re name is on the credit agreement, you will be held responsible for paying the remaining debts.
For instance, a credit card may be under your name but your provider allows a second card for your spouse. Since the card has another name attached to it, this person will be liable to pay for the debts in the event of death.
Things to consider during bereavement and money
- When someone passed away, you have to inform the creditors about the situation. You can write a letter that encloses the details of death and must keep in touch with creditors
- A person’s estate comprises savings, investments, money in the banks. and valuable assets. If these assets are jointly owned or solely owned
- You also have to determine if the deceased person’s debts are included in his or her insurance policy. You can check the policy and find out whether it covers existing debts in the event of death.
Managing a deceased person’s estate
The money(insurance payouts, bank savings, assets owned solely or joint, etc.) is the person’s estate will be utilized to compensate debt payment. Usually, if money is associated with possessions or property, creditors are likely to ask to sell the property to raise funds in paying debts. If you’re not willing to sell the property, you might need to come up with an arrangement with your creditors to pay what you can afford.
Most unsecured creditors will default a debt such as a personal loan or credit card debt if there’s not much to collect. The only time creditors are to pursue collecting debts is when there’s a huge amount at stake.
Free Debt Advice
If you are in the tailspin of giving up on your debts, you need to consider FREE DEBT HELP. Our finance experts can give you best debt management plan, it is possible to get rid of your debt in no time. Should you wish to speak via phone, call us at 0800 193 1024 or online.