do debts die with you?

[nailit]

If you died owing money (utility companies, catalogues, etc) do your debts die with you or is your next of kin responsible?
Thanks.

[Barmaid]

Your debts are payable out of the assets of your estate before it is distributed amongst your beneficiaries. However, if you have no assets and die insolvent (ie you owe more than your assets are worth) then there is no recourse and they must be written off by the creditors.

[dzug2]

Neither.

Your debts must be paid from any assets you have.

Only if you have none do the debts die as well

[nailit]

Thanks for quick replies. I'm asking because a friend of mine died a couple of years ago and basically all he had was a few sticks of furniture (cooker, fridge, second hand 3 piece, etc....no savings) and his dad settled all his outstanding bills. I was sure at the time that his dad didnt have to (and he had to pay all funeral costs) but his dad insisted that he had to, as his next of kin.
Didnt seem right to me at the time that his dad had to get himself into debt to sought out

[nailit]

his dead sons debts. (dont know why AB posted half way through my typing)

[Barmaid]

Sometimes that happens nailit (Ab posting stuff before you've finished).

No, dad shouldn't have done so. He could have obtained a funeral grant from the local authority and left his son's creditors to sort out the mess of the debts. Was it a significant sum?

[tonywiltshire]

Following on from the comment over the funeral payments which are paid from the social fund, there are conditions but if the applicant was in receipt of a means tested benefit, accepts responsibility for the costs of a funeral, and claims within 3 months of the date of the funeral the applicant may be successful, you can obtain the form (SF200, I think) from the DWP or your local jobcentre should be able to help.

[joko]

anyone can be declared next of kin, aunt, uncle, sister, parent etc - it is not a legal title, really just who you wish to be informed should you be ill or dead

sadly i doubt theres much he can do about it now.

[nailit]

Thanks for that guys, I didnt think that his father was liable to square up his unpaid debts.
Barmaid, no it wasnt a significant sum as far as I know. just what was left to pay on a catalogue and the gas and electric.
Thanks again everyone.