Enforceability of CCA of Deceased Relative's Debts?

[MrPrinciples]

Hello everyone,

 

I have had a look at all the threads but I have unusual circumstances so ask for your kind advice (but sorry if I am just repeating what has been asked before):

 

• My partner is the executrix to an estate
  
• The deceased passed away in October 2008
  
• The main beneficiary is my partner's daughter (grand daughter of the deceased - paternal side of the family)
  
• We have a number of credit agreements (see example below) and they form the debts of the estate as they were (completely) unpaid during deceased's lifetime
  
• Agreements were taken out in 2003
  
• No substantial payments were made and they all went into default pretty quickly
  
• Our daughter's biological father is contesting the will and we have had to go to the High Court to get our daughter what was left to her
  
• We have spent 4 years in litigation to win probate for our daughter's inheritance (which thankfully should happen before Christmas - ) at great expense
  
• Probate for the estate has been handled by a solicitor
  
• Litigation of the dispute was handled by a different solicitor (thankfully!)
  
• The probate solicitors have communicated with the creditors directly on the executrix's behalf. They are not hassling us yet but will do when we sell the house because the debts have "equitable charges" against the house (which is the only real asset of the estate).
  
• We did not want to try and clear the credit agreements in case we lost the case over the validity of the will
  
• Now we are close to getting probate, we need to try and get rid of these debts (or at least the punitive interest) on them
  
• Interest has been charged throughout at 20%
  
• I now need to know how much interest has accrued over the course of the litigation so must write to the creditors now for statements of account to enable us to calculate costs that we can attribute back to our daughter's numbwit father. (Sensible?)
  

 

Here is an example of a First National Bank credit agreement in question (we have 3 of these all of the same format and some others that are similar in structure)

[ATTACH]38602[/ATTACH]

 

The only route I can think of is that the agreement does not have the total credit charge, only the amount of credit agreed and then monthly repayments.

 

Thanks

[gordies]

STOP.

 

When were the debts defaulted? If they have been defaulted and not collected for 6 years (5 in Scotland) they are statute barred.

 

What are the 'equitable charges' on the houses?

[BRIGADIER2JCS]

Hi Welcome to CAG, with all these credit agreements, when were any payments or acknowledgments in writting made in regards to them.?

If as you say few or no payments were made on these then after all this time the debts would be statute barred ( six clear years no payment or acknowledgment in wrtiitin).

 

Are these debts being chased?

[MrPrinciples]

Hi Gordies

 

The debts were pretty much unpaid from within a few months of inception. We do not have a record of how the debts have or were handled or whether CCJ have been ordered against them during the deceased's lifetime.

 

An equitable charge is a form of security where the creditor holds an interest in the house but has no right of possession (or control). I worry that they have rights to proceeds if the house is sold though.

 

I will do more research!

 

Thanks

[MrPrinciples]

Hi Bridagier2JCS

 

As of about November/December 2008, the dogs have been called off as the debtor passed away. The interest is just being accrued whilst the creditors await our grant of probate. They know we are not liable AND the estate cannot be liquidated as the caveat on the will is preventing the sale of the house.

 

We have communicated with the creditors so I think that rules out the statute barred option doesn't it?

 

I will make some enquiries and check if it has been 6 clear years since any payment.

 

Thanks

Edited October 2, 2012 by MrPrinciples
manners

[BRIGADIER2JCS]

Check back and I can draft a letter that can be adapted to suit all the accounts.

[MrPrinciples]

Hi Welcome to CAG, with all these credit agreements, when were any payments or acknowledgments in writting made in regards to them.?

If as you say few or no payments were made on these then after all this time the debts would be statute barred ( six clear years no payment or acknowledgment in wrtiitin).

 

Are these debts being chased?

 

I have done a bit more research. I am trying to get a credit file so we can see if there are CCJs which will obviously change the landscape.

 

Having said that, the solicitors we engaged to handle probate (only because the will was being contested) definitely contacted the current account holders so I think it is fair to say the statute barred option is not available as the debts have been acknowledged in 200/8/9 and we have had statements sent since then.

[MrPrinciples]

STOP.

 

When were the debts defaulted? If they have been defaulted and not collected for 6 years (5 in Scotland) they are statute barred.

 

What are the 'equitable charges' on the houses?

 

I assume you means STOP in order to avoid resetting the statute barred timer?