Ulster Bank and Loans
- Thread starter Draff
- Start date
Brendan Burgess
Founder
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- 52,268
Hi Draff
My understanding is that on death, if a person has net liabilities, they do not pass on to their spouse.
So the executor takes the assets, including life insurance, and pays off the debts. But one cannot leave their assets to someone and not pay their debts.
Does that make sense?
My understanding is that on death, if a person has net liabilities, they do not pass on to their spouse.
So the executor takes the assets, including life insurance, and pays off the debts. But one cannot leave their assets to someone and not pay their debts.
Does that make sense?
And it's nearly always worthwhile approaching the lender directly to come to an arrangement about getting the debt repaid. They tend to look very favourably on such borrowers, including occasionally being willing to suspend the running up of interest.
Remember that what may seem like a huge debt to an individual borrower will usually be very small beer from the perspective of the lending institution.
I have never heard of anybody regretting approaching the lender in such circumstances.
Remember that what may seem like a huge debt to an individual borrower will usually be very small beer from the perspective of the lending institution.
I have never heard of anybody regretting approaching the lender in such circumstances.
moneyhoney
Registered User
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- 516
Financial institutions CANNOT pursue a person's estate to recoup unpaid debts. They are unsecured. If you die, your debts die with you.
D
daltonr
Guest
Draff,
If you or anyone you know is considering a drastic way out of debt I'd urge you not to consider this way. Talk to MABS.
I might be completely wrong here, I think Marion had the same idea with her post.
-Rd
If you or anyone you know is considering a drastic way out of debt I'd urge you not to consider this way. Talk to MABS.
I might be completely wrong here, I think Marion had the same idea with her post.
-Rd
So before this thread gets to out of hand, there is need for the Smaritians or any organisation like that...!!! I guess I should have been clearer in my original post 
The story is my father passed away with the bank debts outlined below. I am looking to know what way my mother should bargain with bank when going to work out re-payments etc.
She has the money to clear the debts but obviously she has lost all sources of income and would like to keep the (little bit) of money she has from her husbands pension.
Is anybody aware of a scenario where:
- the bank has cleared the loans for the widow.
- the bank has decreased the loan amounts (as suggested by Oysterman)
In my version of the world, the bank would clear the debts....
The story is my father passed away with the bank debts outlined below. I am looking to know what way my mother should bargain with bank when going to work out re-payments etc.
She has the money to clear the debts but obviously she has lost all sources of income and would like to keep the (little bit) of money she has from her husbands pension.
Is anybody aware of a scenario where:
- the bank has cleared the loans for the widow.
- the bank has decreased the loan amounts (as suggested by Oysterman)
In my version of the world, the bank would clear the debts....
Thanks for the clarification, and sorry for your loss. I take it there was no life insurance? Can you check to see if your father by chance was paying Loan Protection insurance on either the loan or the credit card?
I recall hearing way back that normally credit card debt is wiped on debt, but you'd really need to check the terms & conditions. Ask the bank for a copy if you don't have one handy.
I recall hearing way back that normally credit card debt is wiped on debt, but you'd really need to check the terms & conditions. Ask the bank for a copy if you don't have one handy.
Draff,
I think Brendan's response answers your question, however, to add some comments in hope of being helpful...
If the debts were in joint names of your mother and father then your mother is still liable for the debts but as Rainyday said it is worth checking the Terms and Conditions and if there were any insurance policies to cover such loans.
If your father ever had a mortgage with Ulster Bank then even if the UB debts were in his sole name it would be necessary to check if the bank can rely on the security of the house...what you are looking for in the Terms and conditions is a reference to an "All Sums due clause".
If none of the above apply ... why do you, or your mother, think your mother will have to pay anything?
I think Brendan's response answers your question, however, to add some comments in hope of being helpful...
If the debts were in joint names of your mother and father then your mother is still liable for the debts but as Rainyday said it is worth checking the Terms and Conditions and if there were any insurance policies to cover such loans.
If your father ever had a mortgage with Ulster Bank then even if the UB debts were in his sole name it would be necessary to check if the bank can rely on the security of the house...what you are looking for in the Terms and conditions is a reference to an "All Sums due clause".
If none of the above apply ... why do you, or your mother, think your mother will have to pay anything?
moneyhoney
Registered User
- Messages
- 516
Draff,
In relation to an individual dying and leaving debts after them - the debts are offset against assets their estate holds.
If you have an individual's estate which has no assets to offset against the debts - then the debt cannot be enforced against another family member.
Unless - a family member has acted as a guarantor on the loan, then they have accepted liability in the event of the individual not being able to make the repayments.
In relation to an individual dying and leaving debts after them - the debts are offset against assets their estate holds.
If you have an individual's estate which has no assets to offset against the debts - then the debt cannot be enforced against another family member.
Unless - a family member has acted as a guarantor on the loan, then they have accepted liability in the event of the individual not being able to make the repayments.