Debt Owing After Death

[catsrcool]

A female friends partner died owing aprox 7k to a debt management company.
They were not married but living together when he died so obviously she does not have to pay it. But what happens if the receipts from the life insurance are less than the debt is it then written off?

[factor-fiction]

You are right- the Estate is responsible for the debt. I think funeral expenses have to be paid first. If there isn't enough in the estate (property, life policy, money, other assets) to pay all the debts then partial repayments may have to be made to debtors until the estate is exhausted. I'm not sure how debts are prioritised though- say if he also owed council tax or a credit card bill

[catsrcool]

Thanks

[woofgang]

I believe that other statutory bodies also have first call such as overpaid benefit and unpaid council tax

[heathfield]

If you're unable to meet all your bills and debt repayments, you should pay these first:

mortgage, rent and any loans secured against your home
Income Tax, National Insurance and VAT
Council Tax
gas and electricity bills
child maintenance
TV licence
hire purchase agreements, if what you're buying with them is essential
court fines

From...

https://www.moneyadviceservice.org.uk/en/articles/how-to-prioritise-your-debts

[factor-fiction]

That's advice for someone who is living though rather than about winding up an Estate

[Peter Pedant]

This is from the N I govt advice line

http://www.nidirect.gov.uk/what-happens-to-debts-when-someone-dies

yeah yeah I know it is only binding on NI - but give a good idea...