Is a person takes out an unsecured loan on a car and dies just two months into the agreement does the debt die
My late husband took finance for a car two months before he suddenly passed away. now the company are pressing me for full payment of the loan. i was told that because it was an unsecured loan, the debt dies with my husband. the company are now trying to claim off my husbands estate but he died without leaving a will and did have enough assets to go to probate so probate has not been asked for. does anyone know my position on this?
Answer
Loans die with the debtor. that does not prevent a creditor applying to the estate.was an insurance taken out to protect the loans repayments?its worth checking the loan agreement .generally the creditor will not pursue unless you jointly owned a property with the deceased and a mortgage exists. its up to them if they wish to continue chasing but you also have a choice to stand your ground. whatever you do dont pay them out of your own funds. they will soon tire of chasing but as you were not part of the original contract they can not make you pay...although they may try to frighten you into thinking so
