Unsecured debts and death
Unsecured debts are things like loans and credit cards.
What happens to these debts after someone dies depends on:
- Whether they had any assets like:
- Investments
- Savings
- A house
The debts were in their name only
Debts only in the name of the person who passed are either:
- Written off if the person did not have any assets, or
- Repaid if the person left an estate
- This could be anything from savings to a share in a house
You are not responsible for a debt only in the name of your husband, wife or civil partner.
People only receive an inheritance after funeral costs and debts are paid.
The debts were joint with you or someone else
The other person on a joint credit agreement is responsible for the debt when someone dies.
A credit card is only ever in one name. But they may let you have a second card for your partner or someone else to use.
Someone else with their name on the card is a 'second card holder'.
The second card holder is not responsible for paying the debt on either card.
Was your loved one on a DMP?
A debt management plan (DMP) is a way to pay back debts by making affordable monthly payments.
The best thing to do when someone passes while on a DMP is to:
- Call their DMP provider
- Tell them what has happened
They may ask for details from the death certificate, so it is best to have this to hand.
Contact us about a StepChange DMP client here.