MBNA/Avant debt of a deceased customer

Triceratops Ballet

I'm wondering if anyone can help me out. I am the executor of my mothers estate, and when she died she had 10k credit card debt with mbna, she didn't have payment protection so the debt was not cleared upon death. Up to this point solicitor has been fobbing off mbna as there is no money in the estate to clear it.(I had no contact with them at all, as at the time I couldn't deal with it)

When Avant took over I received a letter advising me of the change, but as with MBNA have had no contact with them. I'm eager to get things sorted now and take the solicitor out of the equation so I'm going to contact Avant directly and suss them out. I was wondering if anyone had any simillar experience as I don't know how much (if any) to offer them. The debt was my mothers so I'm not sure they can affect my credit rating, or what my obligations are in paying back an unsecured debt. I'm also wondering if Avant will bother chasing the debt as it would have been listed as a deceased account, maybe they will just have written it off?

If anyone has any experience or advice, I'm all ears (or eyes!)

Thanks!!

coylemj

It's a lawful debt so if there is money or assets in the estate then they are entitled to part or full payment. As executor they could in theory come after you personally if, for example, you distributed the assets to others and gave them nothing. It wouldn't affect your personal credit rating but they could take a civil action against you in your role as executor. The discharge of lawful debts is supposed to happen before any bequests are met, that means that after the funeral expenses are paid, your mother's creditors are next in line.

You say you're now trying 'to take the solicitor out of the equation', that will be easier said than done because if you as executor gave the solicitor the job of doing probate, it would be unusual to remove him midway through the process unless you can convince the probate office that he's incompetent and not up to the job.

Kalimah

From my own memory of being the executor of my father's will back in the 90s any debts should be settled out of the deceased estate. My father had a tax liability which we cleared out of the sale of the house. Solicitor dealt with all of that. Unless you were a guarantor for your mother when she got the card I can't see you having any liability so it wouldn't affect your credit rating.
I'd let the solicitor look after it. As previous poster said the funeral expenses are first in line. Taxman next and possibly mortgage after that if any.
All this is only from memory as it's well over 20 years since I was an executor.

GerardKeating

dottie_lottie wrote: »

I'm wondering if anyone can help me out. I am the executor of my mothers estate, and when she died she had 10k credit card debt with mbna, she didn't have payment protection so the debt was not cleared upon death. Up to this point solicitor has been fobbing off mbna as there is no money in the estate to clear it.(I had no contact with them at all, as at the time I couldn't deal with it)

When Avant took over I received a letter advising me of the change, but as with MBNA have had no contact with them. I'm eager to get things sorted now and take the solicitor out of the equation so I'm going to contact Avant directly and suss them out. I was wondering if anyone had any simillar experience as I don't know how much (if any) to offer them. The debt was my mothers so I'm not sure they can affect my credit rating, or what my obligations are in paying back an unsecured debt. I'm also wondering if Avant will bother chasing the debt as it would have been listed as a deceased account, maybe they will just have written it off?

If anyone has any experience or advice, I'm all ears (or eyes!)

Thanks!!

Every one has an estate, even if it is just some clothes and a few trinkets.

In theory, that must be sold to pay the debts before any thing could pass heirs.

If you distribute anything to heirs/family they could "come after" you.

Best to talk to them, maybe there might left it go, but get it in writing.

Triceratops Ballet

Hi All,

thanks for the feedback, I probably didn't explain well enough as I was trying to be brief. There is/ was an estate there was some money and the house that we live in. The money went to pay off the funeral expenses, which I understand legally come before unsecured debt in the pecking order of things to be paid. There is a small amount left which I want to put towards the cc debt, towards clearing it.

The grant of probate has been taken and the house has been transferred into mine and my sisters name. Obviously I don't want to sell our house to pay the debt, which is why I want to call them to make a deal to settle the debt so we can finish this off and get on with things.

The reason I want to take the solicitor out of the equation is that my mother dies in 2010 and I feel like he's been dragging it out needlessly leaving us in this weird limbo.

I feel like if he is out of the equation, I can use the money in the accounts to deal with Avant and clear it, settle his fees, and be done with it. Like its been a tough enough 4 years I feel like this is something just hanging over me, and I need to get it sorted so we can get on with life. Instead of having this worry that they are gonna come after us to sell the house for a few thousand euro in debt. Maybe I'm just being impulsive and rash, I know these things are supposed to take time, I just never imagined that 4 years on we would be in the same place.

I'm really looking to see if anyone has had any experience in trying to agree a payment plan/ settlement figure for credit card debt, as I don't know where to start when making an offer.

3DataModem

dottie_lottie wrote: »

I'm wondering if anyone can help me out. I am the executor of my mothers estate, and when she died she had 10k credit card debt with mbna, she didn't have payment protection so the debt was not cleared upon death. Up to this point solicitor has been fobbing off mbna as there is no money in the estate to clear it.(I had no contact with them at all, as at the time I couldn't deal with it)

When Avant took over I received a letter advising me of the change, but as with MBNA have had no contact with them. I'm eager to get things sorted now and take the solicitor out of the equation so I'm going to contact Avant directly and suss them out. I was wondering if anyone had any simillar experience as I don't know how much (if any) to offer them. The debt was my mothers so I'm not sure they can affect my credit rating, or what my obligations are in paying back an unsecured debt. I'm also wondering if Avant will bother chasing the debt as it would have been listed as a deceased account, maybe they will just have written it off?

If anyone has any experience or advice, I'm all ears (or eyes!)

Thanks!!

Firstly, sorry for your loss.

1. The debt (or any short-settlement) won't affect your credit rating. The debt passed from your mother to the estate, so MBNA is owed by the 'estate', not you.

2. Persuing an estate for an unsecured debt is not easy, or cheap, for a credit card company. If you write them a letter indicating that the debts in the estate are large and varied, and assets are very limited, and offer to pay a consideration towards it (say, 1k) you stand a good chance of getting a substantial amount written off. The key part is basically making them believe that there's little or nothing liquid in the estate for them to persue. E.g. if all your mother had was her house, her personal effects, and this debt, then MBNA know they will never see a penny. So make the offer (FROM YOUR OWN FUNDS) and best of luck.

3DataModem

dottie_lottie wrote: »

Up to this point solicitor has been fobbing off mbna as there is no money in the estate to clear it.

OK I've just re-read the above.

You definitely have a shot at getting this written off.

PM sent.

Marcusm

I'm confused; there was a house which was worth more than 10k but instead of settling the debt in some manner the solicitor effected a transfer of the property to you and your sister in your capacity as beneficiaries (ie not in your capacity as executors). I can't understand any basis for the card company not insisting on immediate settlement in full of the debt plus accrued interest if they are aware of the facts. The fact that there was insufficient CASH in th estate to clear it was irrelevant, the solicitor whom you engaged to undertake probate on your behalf (as executor) should have made it clear that the debts needed to be settled.

Fred Swanson

This post has been deleted.

Triceratops Ballet

Marcusm wrote: »

I'm confused; there was a house which was worth more than 10k but instead of settling the debt in some manner the solicitor effected a transfer of the property to you and your sister in your capacity as beneficiaries (ie not in your capacity as executors). I can't understand any basis for the card company not insisting on immediate settlement in full of the debt plus accrued interest if they are aware of the facts. The fact that there was insufficient CASH in th estate to clear it was irrelevant, the solicitor whom you engaged to undertake probate on your behalf (as executor) should have made it clear that the debts needed to be settled.

Marcusm, I do know that the debts have to be settled if you read my previous posts you'll see what I've asked is if anyone has any advice in dealing with the cc company in settling the debt.
You are correct the house could be sold and the proceeds used to settle, but as this house is the house I live in currently with my sister, (and the house we have lived in for the last 27 and 25 years respectively) I am looking for advice on settling without the two of us losing the only home we have ever had.
I don't know why the cc company haven't pushed for a sale, but I'm glad they haven't. I don't know why the solicitor proceeded this way either, but he did, this is the situation I find myself in and I am trying to resolve it as best I can. I am happy to settle with the cc company, I just wasn't sure how to go about it.

Marcusm

dottie_lottie wrote: »

Marcusm, I do know that the debts have to be settled if you read my previous posts you'll see what I've asked is if anyone has any advice in dealing with the cc company in settling the debt.
You are correct the house could be sold and the proceeds used to settle, but as this house is the house I live in currently with my sister, (and the house we have lived in for the last 27 and 25 years respectively) I am looking for advice on settling without the two of us losing the only home we have ever had.
I don't know why the cc company haven't pushed for a sale, but I'm glad they haven't. I don't know why the solicitor proceeded this way either, but he did, this is the situation I find myself in and I am trying to resolve it as best I can. I am happy to settle with the cc company, I just wasn't sure how to go about it.

Without intending to be callous, considering the circumstances, I assume they would take a cheque.

antoinolachtnai

You really need to work with your solicitor to sort the whole thing out.

In strict legal terms, you cannot expect the creditor to be at a loss when there are assets in the estate (i.e., the house)

The creditor has the right to expect that he will get paid in full because there is value in the estate which is greater than the amount owed. In the end, they are entitled to expect you and your sister to pay the debt and the further interest that accrues. That is not to say they won't negotiate. But that is the starting point.

The solicitor is the guy who has to resolve this. You cannot 'be done with' the solicitor. The probate office will want him (or maybe another solicitor in his place) to stick with the process now until the end. You need to sort out the legal loose ends in order to have proper title (ownership, basically) in the house. You may need to have a discussion with your solicitor about what is taking so long, and his plan for closing the whole thing out.