Personal Loan Debt of partner that died

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Charlie_Boy

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Hi, I have spent some time searching this site, but cannot find anything on this.

A little over 3 months ago, my partner of 11 years died suddenly. I have been gradually sorting out her affairs, but am quite unsure of the following situation.

She had a personal loan of €25K from BoI, with over 3 years still to pay on the term of the loan.
We do not own a house, and have pretty small savings, and her estate, such as it is, consists of a car, clothes and a small amount of savings in a CU, the whole value will not cover the outstanding debt.

She did however, have a good job, working there for just under 4 years, and there is a death in service payment, of which I am the beneficiary. This payment is sizeble enough, well into 6 figures. (there is also a pension, but its negligible at this stage)
My question is, can the bank demand some of the death payment, or the pension, to cover the loan repayment?
I would like to use the payments to buy a house, get me life back together etc.

Am I under any legal obligations to pay her personal loan (outside of the moral argument to pay off debts that are due?)

Apologies of this type of question has been asked before, probably has, but I could not find it.
 
Charlie_Boy said:
Hi, I have spent some time searching this site, but cannot find anything on this.

A little over 3 months ago, my partner of 11 years died suddenly. I have been gradually sorting out her affairs, but am quite unsure of the following situation.

She had a personal loan of €25K from BoI, with over 3 years still to pay on the term of the loan.
We do not own a house, and have pretty small savings, and her estate, such as it is, consists of a car, clothes and a small amount of savings in a CU, the whole value will not cover the outstanding debt.

She did however, have a good job, working there for just under 4 years, and there is a death in service payment, of which I am the beneficiary. This payment is sizeble enough, well into 6 figures. (there is also a pension, but its negligible at this stage)
My question is, can the bank demand some of the death payment, or the pension, to cover the loan repayment?
I would like to use the payments to buy a house, get me life back together etc.

Am I under any legal obligations to pay her personal loan (outside of the moral argument to pay off debts that are due?)

Apologies of this type of question has been asked before, probably has, but I could not find it.
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Charlie_Boy, you are under no legal obligation to pay back her loan unless you gave a personal guarantee to the bank.
 
The question to be answered first is who is the benefit paid to.

If the payment is made to the estate of the deceased then the executor is obliged to pay off the debts of the estate before making distributions to beneficiaries.

If the payment is made directly to you then you don't have to pay off the debt.
 
It was a personal loan for personal consumption as far as I can gather from the post.
 
OP, sorry for your loss. Without being smug, fair play to her for leaving the BoI high and dry. My only contribution to this post, is to do to the Bank what they are trying to do to many other thousands. The institution you are dealing with are nothing than a parcel of bullies. Take the money, remember your partner and enjoy every cent. Just make sure you are legally covered.

On a by note to this, I owe the same Bank in excess of €40 k, which I refuse to pay until they call it to the courts. The fact the the Ombudsman has determined that I was fraudulently dealt (amounts to huge amounts) with by the same Bank means nothing to them. In the case, they weren't aware, I sent them the papers, but in their own words they don't care. I have told them a few weeks ago to sue me and then their past actions will be public knowledge. Guess what, they have stopped harassing me.
 
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