Debt

When someone dies their debts don’t automatically die with them and will depend on whether they were debts owed solely by the deceased or jointly with another person.

Joint Debt

A joint debt is where two or more people are responsible for the debt and all names will be on the credit or loan agreement. It is usual for the surviving people to continue to be responsible but this may vary between lenders and it is advised to read the Terms & Conditions of the agreement and contact the lender for confirmation.

In some instances, mortgage debt, which is commonly owed by two people may be covered by an Insurance policy which will pay off the balance owing on the first death.

Bank accounts in joint names will not be frozen and regular standing order or direct debit payments will continue the bank and credit company are advised of the death. 

There are organisations available who can offer free practical help and advice on how to cope with debt following a death. 

Individual Debt

This is a debt which was taken out by and in the name of the deceased only and debt owing, will generally, have to be paid from the estate of the deceased.