How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

If a person has a personal loan and dies does the loan pass

Resolved Question:

If a person has a personal loan and dies does the loan pass to relatives
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

No - not unless they guarantee the loan or are named as a joint loan

Alex Watts :

But no, when you die the loan and any amount due becomes a debt of your estate

Alex Watts :

Your relatives are not personally liable

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

So if my mum had a loan unsecured and not guaranteed but mum and dad own their home does it mean the bank could get the money from dad

Alex Watts :

No.

Alex Watts :

Your dad wont owe the debt. But the estate would.

Alex Watts :

So if there was money in the bank account etc, that would need to be used to pay the loan

Alex Watts :

The debt would have to be discharged from the estate

Customer:

Basically my mum died recently and had a bank loan dad didn't know about and is worried that thay can take money from him to repay it.

Alex Watts :

They wont take it from him personally no - but the estate may have to pay it

Customer:

If the debt is more than the bank balance?

Alex Watts :

If there isn’t enough money to pay everyone, the personal representative should take advice from a probate specialist on which debts should take priority, and they should inform the creditors that the estate is insolvent.

Alex Watts :

The bank may therefore write off the debt

Customer:

Ok. Thankyou. Only one debt but probably more than in her bank. So I continue to woory.

Alex Watts :

Ok - can I clarify anything else?

Customer:

No thats grat thanks

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.

If the system won’t let you please click reply.

Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

Ash and other Law Specialists are ready to help you