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Buachaill, Barrister
Category: Law
Satisfied Customers: 10537
Experience:  Barrister 17 years experience
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My father recently died leaving piles of debts mainly credit

Resolved Question:

Hi. My father recently died leaving piles of debts mainly credit cards but nearly £100,000 between them all and some seemed to have been bought by other debt companies, and some have judgements against him but have so far done nothing else.. He was ill the last 3 years so most debts are old. He owned a home with my mother who's old too but she's living in the house which now has no mortgage apart from 1 charge for one debt. so she's left me to sort everything out. Is it best I wait as long as possible and then don't have to pay after 6 years (and for the judgement ones is it 6 years from judgement or 6 years from the last payment made). Should I even call them or not, and tell them he's passed away? Would that make them more likely to try to get charges on the house or will those card debts died with him? He left no money apart from the home which my mum now lives in. Thanks.
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.

1. Dear Do, the first thing you need to be aware of, is that these debts have not died with your father. They continue in being after his death and fall now to be discharged from the estate he has left to his descendents. This means that whoever, takes out letters of administration to his estate will have to pay off these sums. However, be aware that in the interim, his assets, such as the house, will be liable to be attached in order to discharge these debts. So, it is likely that the credit card and other debtors will seek to charge them upon the house once they find out your father has died.

Expert:  Buachaill replied 1 year ago.

2. However, you are correct, in that there is a six year time limit from the date of judgment for the validity of these debts. However, if your father made a payment in respect of the judgment, this revives the judgment and it is then six years from the date of last payment that the Statute of Limitations runs.

Expert:  Buachaill replied 1 year ago.

3. In relation to the debts for which there has been no judgment obtained, it is six years since the date when the debt fell due for payment. So, if these debtors don't proceed to judgment their claims fall away after six years.

Expert:  Buachaill replied 1 year ago.

4. Ultimately, you can seek to wait six years and hope that the creditors die a death by means of the Statute of Limitations. However, it is more likely that one creditor will seek to act for all the combined debtors and seek to attach and sell the asset your father has, namely the house. So, whilst you can wait, you are taking a chance that the creditors will not pursue things vigorously.

Expert:  Buachaill replied 1 year ago.

5. Please Rate the answer as unless you Rate the answer your Expert will receive no payment for answering your question.

Customer: replied 1 year ago.
Hi. Thank you. This is very very helpful. One final part I'm still confused about. As most the debts are still currently unsecured and we're taking in his name alone, can they seek to put charges on the house if we manage to change it to solely in her name? Eg if the asset is not in his name soon, is it likely they can do (or it's worth their while) to do anything?
Expert:  Buachaill replied 1 year ago.

6. The only way you can put the house in your mother's name is ***** ***** administer the estate of your late father. However, whoever is executor is obliged to pay these debts that are owing if they want to administer the estate. Otherwise the executor or administrator of the estate is committing a fraud on the creditors. So whilst the house cannot be charged if it is in the name of your mother, if it was put there without paying the creditors, the creditors can get this transfer set aside as a fraud on the creditors.

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