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Dealing with debts after a death. The financial impact of loss

Dealing with things after losing a loved one can be overwhelming. It can affect every part of your life.

Knowing where to start can be difficult, especially when you are dealing with their debts, money or belongings.

Our debt advice can offer support.

This guide explains what usually happens to debts after you lose a loved one. You can read about what steps you need to take and find out where to get help if you are unsure what to do.

Asking for help can be hard.

Are debts causing you stress? Do you feel you never have the time?

Whatever the barrier, let’s deal with it together.

Where should I start?

Losing a loved one can be one of the most difficult experiences you will face. Dealing with their finances can feel overwhelming, especially if you are not sure what happens next.

If they were in debt, it is important you try to contact all the people they owe money to.

The people they owed money to may ask you for a copy of the death certificate
They may send you letters confirming what happens to the debt
Keeping copies of letters and agreements about the debts can help you keep track of what has been discussed
Telling the companies who are owed money know about the death can help reduce unnecessary contact, such as payment reminders

Are you struggling with debt after the death of a loved one?

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StepChange have been supporting someone who has passed away. How can I let you know?

We understand it can be difficult dealing with things after the loss of your loved one.

Please call us to let us know about your recent bereavement so that we can support you in the best way and update our records. Follow these steps:

My loved one was on a Debt Management Plan (DMP) or Token Payment Plan (TPP)

We will ask you to send us a copy of the death certificate
We will not need a death certificate if your loved one was still in the process of receiving advice, or setting up a repayment plan or other debt solution
The death certificate can be emailed to reviewteamcorrespondencesupport@stepchange.org
You can also post in a copy to: Client Review, Stepchange, 123 Albion Street, Leeds, LS2 8ER
IMPORTANT: If you are sending a copy by post, please do not forget to provide your return address so we can return it to you.

My loved one was on an Individual Voluntary Arrangement (IVA)

We will ask you to send us a copy of the death certificate, a copy of the will if there one and the executers contact details
These can be emailed to: IP@Stepchange.org
You can also post in a copy to: StepChange Voluntary Arrangements, StepChange, 123 Albion Street, Leeds, LS2 8ER
IMPORTANT: If you are sending a copy by post, please do not forget to provide your return address so we can return it to you

My loved one was on a Debt Payment Programme (DPP)

We will ask you to send us a copy of the death certificate
The death certificate can be emailed to: das@stepchange.org
You can also post in a copy to: StepChange Debt Charity Scotland, Finlay House,10-14 West Nile Street, Glasgow G1 2PP
IMPORTANT: If you are sending a copy by post, please do not forget to provide your return address so we can return it to you.

My loved one was going through Minimal Asset Process (MAP) or Sequestration

Both of these debt solutions are a form of Bankruptcy in Scotland
This means that they have an appointed trustee
A trustee is the person or organisation appointed to deal with your loved one’s assets and creditors
A next of kin would be required to inform the appointed trustee and send a copy of the death certificate
To find out who your loved one’s trustee is, please search the Accountant in Bankruptcy's (AiB) Register of Insolvencies (ROI)

I have third party authorisation on the account of my loved one

Once you have let us know about, we will not take any further action
We can discuss details of the case with you and advise you on next steps
All communications from StepChange such as letter and emails will stop
You might still get letters, calls and emails from companies who are owed money
It is best to let them know about your bereavement as soon as possible so they can update their record and stop any further communications

I do not have third party authorisation on the account of my loved one

Because of data protection laws, we cannot discuss any case details with you
We will need you to give us your first name and your relationship with your loved one
Once you have let us know about, we will not take any further action
All communications such as letter and emails will stop

My loved one was in the process of setting up a debt solution with you

If your loved one was receiving advice from us but had not yet set up a repayment plan or other debt solution, please call us.

You won’t need to provide a copy of the death certificate.

Me and my loved one were in the process of setting up a joint debt solution with you

As things have changed, we will need you to review your income, spending and debt information with us. This is to make sure our advice is still right for you
You can do this online or with an advisor on the telephone

Joint debts

Your loved one might have had debts that were in joint names, like a loan or other credit agreement. If a debt is in joint names, it means it is still owed by the surviving person.

If you lived with your loved one, you may still be liable for debts that relate to the property, such as council tax or water bills.

Dealing with the people my loved one owed money

As we have already suggested, it is a good idea to contact everyone who your loved one might have owed money to. This might be banks, credit card companies and others they have borrowed money from.

Most of these companies have a specialist bereavement team. They will support you and explain what happens next. They will usually ask for details such as:

Your loved one’s full name and address
The account or reference number, if you have it
A copy of the death certificate
Your contact details and your relationship to the person who died

A lot of these companies will stop collections action while they update their records and understand the circumstances.

I am still receiving letters from the people my loved one owed money to

Once you have let creditors know about your loss, they should stop sending letters and making phone calls about any payments.

If you still receive letters or calls about payments after telling them about the death, contact them.

If you feel they are not supporting you in the best way, you can also raise a complaint.

You should not feel pressured to pay the person's debts from your own money.

If you are named on the debt, you will likely still need to make payments. This could be something like:

A joint back account that has an overdraft
A water or energy bill in you and your loved one’s name
A loan you acted as a guarantor on for your loved one
If you are unsure what to say to a creditor or are worried about dealing with the person's debts, we are here to help. Our free debt advice can explain your options and what you may need to do next.

Dealing with your loved one’s estate and assets

When someone passes away, their money, property and possessions make up their estate. Their debts are also usually dealt with as part of the estate.

The person responsible for dealing with the estate is usually called the executor if there is a will, or an administrator if not.

The estate is usually made up of assets (items of value), which includes things like:

Money saved in bank accounts Shares or investments
A property
Other assets like a car, antiques or jewellery

If you are dealing with an estate and are not sure what you need to do, do not worry. Speaking to a solicitor, probate professional or other suitably qualified adviser can help you understand your responsibilities.

For further support, speak to Cruse Bereavement Care

Cruse offer specialist phone, email and face to face support for children and adults who are dealing with loss. Their website also has information on local support services in your area.

Here are some other sites you might find useful

Age UK can advise on the steps to take when someone dies, including:

Finding help with funeral costs and
Dealing with estates

Bereavement Advice Centre

The Bereavement Advice Centre offers practical help after loss.

Free and confidential debt advice whenever you are ready

You are not alone.

We have helped thousands of people over the last 30 years to deal with debts.

We will do all we can to support you.

Take two minutes to answer a few simple questions, so we can find the right help for you.

Need help with debts after a loss?