A lot of us have money borrowing of one sort of another that we know we’ll be dealing with for a good number of years to come.
So long as you know you can afford this, borrowing can be a useful way of paying for things like homes, cars or changes to your property for example. Indeed, it’s the only way many of us have of becoming home buyers.
The said, it’s also a fact that, while getting out of debt is an important aim for a lot of people, some of those who owe money pass away before they have completed their repayments.
If you’re left behind, it’s likely to be a traumatic period for you, one where you might find that, besides deep sadness, you’re also worried about exactly how debts are sorted out after a death.
The fact is that you may or may not be responsible for taking action about any outstanding borrowing that has been racked-up over the years. However, in some circumstances, certain debts could fall at your door.
The PPI Option
One thing you might need to look at, when it comes to a deceased person’s debts, is whether they had payment protection insurance – or PPI – for any of these. There’s a chance this insurance provided cover in case the person borrowing money died.
When debt was shared
If the person who has died is someone you know you borrowed money jointly with, this could make a difference to how things pan out.
There is a chance you’ll be the one who needs to pay what is owed, unless appropriate insurance can come to your aid with a pay-out.
In any case, get in touch with the body lending the money and explain what has happened – they might be able to help. You should arrange to pay the debt yourself if you need to, but seek expert advice should this prove problematic.
Also check the lending contract initially, if you’re not sure if the debt is partly in your name or not.
When a debt was not shared
In order to make use of the assets the person who has passed away used to own to do things like pay debts, it’s first necessary to complete the probate process.
The person who is in charge of the estate will likely be responsible for dealing with both probate and using assets for debt paying.
Unless they already have a knowledge of this complex area, using a probate specialist for help is advised, as a way of being sure about sticking to correct procedure.
The impact of death
It goes without saying that, as the loved one of a person who has died recently, you’ll be upset, and have a huge amount to deal with.
Debt might not be something that you consider straight away, in what is likely to be a very emotional time.
But it is an issue that you might well need to become involved with, at least when it comes to getting the correct advice about debt issues at this time.
Debt is a much talked about issue. Discover more here.