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Cabot debt for person RIP

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  • 26-02-2024 4:42pm
    #1
    Newjob1
    Registered Users Posts: 18 ✭


    Hi,


    just wondering if anyone can help or advise.

    My mum passed away last year, and she has a debt of €6k through Cabot and was paying €50 a month direct debit from her account. My father had kept paying it after her death but is not well himself now and as a result isn’t paying the €50 a month for the last 4 months resulting in letters threatening court proceedings.


    not sure what to do about it, the debt was originally in my mums name and it was her credit card debt. My father just paid it after her debt as he felt it was their own joint debt and it was the correct thing to do.


    problem is now he’s not well both physically and from a cognitive point of view and it’s being left to me….. it appears Cabot aren’t aware my mum passed away as my father mustn’t have informed them and just kept paying. Not sure what to do now.


    any advice or experience of this would be very helpful.


    thanks



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    #2
    emo72
    Registered Users Posts: 6,191 ✭✭✭emo72


    I'm pretty sure if the debt was in her name, then your father shouldn't pay it. The debt dies with her.



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    #3
    Mrs OBumble
    Registered Users Posts: 25,692 ✭✭✭✭Mrs OBumble


    Did she leave any kind of estate? How was that dealt with? At very least her bank or credit union accts would have had to be closed, and pension stopped.

    If it was left to your father to do, then does someone have Power of Attorney for him? If not you need to look up how the Decision Support Service applies, because this has all changed recently.



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    #4
    GerardKeating
    Registered Users Posts: 7,531 ✭✭✭GerardKeating


    https://www.boards.ie/discussion/2058337967/cabot-debt-for-person-rip

    Sorry about the loss of your mother.

    The debt was your mothers, and joint account are not common with credit cards, even when there is a second card on he account.

    After her death, only her estate is liable for the debt. if you father inherited from his wife, then he should pay her debts first before taking any of the estate. The executor of her estate should have closed any/all accounts in her name.



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    #5
    coylemj
    Registered Users Posts: 25,340 ✭✭✭✭coylemj



    https://www.boards.ie/discussion/comment/121819953#Comment_121819953

    The debt only dies if there is no money to pay it. Her estate is liable for the debt and it's the duty of the executor of her estate to pay it or, at the very least, to engage with her creditors.



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    #6
    Newjob1
    Registered Users Posts: 18 ✭Newjob1


    She only had the family home that she and my father owned.

    apart from state pension, no other financial income or private pensions. My father didn’t engage with a solicitor on her death and unfortunately they both didn’t do a will.


    it’s a bit of a minefield now and it’s left to me to try and sort out.

    so the estate I take it it’s just the house then as there are no other assets my late mother had. Will they force my father to sell the house to get their money back? I’ve no experience of this at all, someone told me we can do all the administrative bit ourselves but I looked it up and to be honest it’s over my head. Engaging in a solicitor is probably the best scenario but unfortunately that cost will have to come from me as my father has no real money apart from his standard state pension and fuel allowance. I usually help with shopping and bills when I can as he has no other financial support.



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    #7
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,745 Mod ✭✭✭✭L1011


    First thing is to send Cabot a death cert - this should stop them demanding payments and court docs.

    That, quite possibly, will be that.

    If they keep on after that, you will need to explain that she died intestate and without assets other than the house. Which may also be enough to get them to go away. If they do not, you may then need to discuss this with a solicitor - but do this first, its basically free and will reduce the demands.

    They are not going to be able to force a sale of the house.



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    #8
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,008 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/comment/121819953#Comment_121819953

    That would be a no.



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    #9
    scwazrh
    Registered Users Posts: 2,603 ✭✭✭scwazrh


    I would ring Cabot , explain the situation, tell them there is no money available but to solve the problem you’ll make a one time offer of about 20% otherwise they may go legal.Very high chance they will take it and if not there not much they can do .its an unsecured debt owed by a person who’s passed away.

    Post edited by Jim2007 on


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    #10
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,008 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/2058337967/cabot-debt-for-person-rip

    You need to start by establishing the nature of this debt before taking action. Generally speaking there are two situations - a debt that is solely the responsibility of the deceased person and a debt that is the joint responsibility of the deceased and one or more living person.

    Contrary to what some believe, debt does not die with the death of the person who ran it up, it crystallises and becomes a claim on the estate of that person. If that was not the case then older people and people who have certain health concerns would find it impossible to obtain credit.

    If the debt was only in your mothers name, then it is the responsibility of the executors of her estate to settle the debt if there is sufficient assets in the estate. In many cases on the death of a wife there are very few if any assets in her name and the legal process of obtaining probate or letters of administration is not done. In such cases the creditor, Cabot in this case, will accept a copy of the death certificate as evidence that they are not going to be able to collect the debt. And if there is an estate, then it is up to the people appointed to administer the estate to deal with the matter.

    If on the other hand it is a joint debt, then the living persons are responsible for that debt to the creditor, although they'd normally have a claim on the estate of deceased. Although in family situations this is all a bit theoretical. So it can be glossed over.

    So your plan of action should be:

    • Establish the nature of the debt
    • If it is in your mother's name only and there is no estate, contact them and see what documents they need to accept this and write the debt off
    • If it is in your mother's name and there is an estate give the correspondence to the executors or their solicitors to deal with
    • If it is a joint account contact Cabot and explain the situation and see what can be done

    From our post it is not clear to me if your father has just stopped paying, is unable to continue paying or no longer has the mental capacity to deal with his affairs.

    Note: My experience of dealing with this stuff in Ireland is dated, so I'm open to correction.



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