If a person with no kin who has debts has terminal cancer, do creditors have a policy of writing the debt off?

Answer 1

they have no choice. unless they take it from the estate. get the person to liquidise all assets, that way there's nothing for the taking. not even the government can get in with their inheritance tax

Answer 2

"Writing off" is an accounting process that basically means that the creditor recognizes that the debt is uncollectable.

If a person has wealth and debts, then the wealth can be used to pay the debts. The person having cancer or not has nothing to do with the issue. After a person dies, the estate takes responsibility for the debts and must pay them in full before distributing and wealth to heirs. However, if the assets in the estate do not cover the debts, then they get written off because the heirs are not responsible for the debts and they are truly uncollectable.

Answer 3

Hello,

(ANS) If you want to verify that this is the case that a terminally sick persons debts would be written off after the person died. Please could I suggest that you contact one of the following organizations as they will definitely know the legal position on this matter.

No.1 The Consumer Credit Counseling Service (the CCCS) they are a national charity and they exist to help people who are in financial difficulties or have debit problems. They offer free unbiased advise on matters of this kind, they also help people clear or manage their debits free of charge.

No.2 Citizens Advise Service (CAB) should have a local contact phone number or advise surgery locally that can clarify this for you.

No.3 Also Age Concern may well have advise on this area, also some cancer charities may also have good advise on this too.

Both of these organizations have websites with contact details, & a quick Yahoo or google search should easily find them.

**Just check that any outstanding creditors cannot take money or funds from a dead persons estate. Such as trying to recover their debit from a house sale etc.

Hope that is useful?

Kind Regards Ivan

Answer 4

they will, eventually, write off the debt and depending upon the collections manager, they may shelve the debt until death and then file a claim against the estate.

Personally? hammering a terminally ill person into the ground for a debt is counterproductive and the type of action that ends up on the local troubleshooter TV shows (bad publicity). Back in the day(I was a former collections maanger), I'd've requested and gotten proof of illness and then flagged the account into my management review queue to prevent a call from going out.

Answer 5

All debtors are liable to pay their debts until their death The debts are written off then

Some may attempt to claim from the deceaseds estate....but it depends on the amount owed and the value of the estate and who the creditor is eg government bodies like the tax office will try....credit cards and loans will not

Answer 6

A deceased person's estate pays outstanding debts. If the estate is insufficient to do so, the remaining debt is discharged.

Relatives do not "inherit" debts unless they are coborrowers or cosigners for those debts. Of course, if the entire estate must be liquidated to pay debts, there may be nothing left to inherit.

Answer 7

It depends on what his estate is worth and is worth there while pursuing the debt..His next of kin are not responsible for his debts

Answer 8

Once it is proven that they have died then yes, but until then the only way to clear them would be to pay them or have them take you to court and bankrupt you as you have no way of paying them

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Answer 9

They can check your estate. If you have left nothing then on proof of death they will write it off