Within the next couple of days the father in law is expected to croak it.
He has finance on his car that still has some way to go.
Mother in law doesnt fancy trading her broom up, so will need to sell it.
If she just stops the payments, is she liable or does the debt die with the old man.
Yes they have looked on the small print but can't find the answer.
She just want's shot of the car, minimal hassle.
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The loan is a debt on your FiL's estate, so must be honoured before the remainder of the estate is distributed to the beneficiaries of the will.
If your MiL is the sole beneficiary then it's for her to settle the finance in any way she sees fit.
Depending on how much the car is worth and how much is owed, it may be sensible for your MiL to voluntarily surrender the car back to the finance company. This doesn't apply to all types of loans however. You're looking for a "regulated agreement under the consumer credit act" for the surrender rules to apply.
Can you look over the finance documents and tell me if it contains a section outlining the full and the 1/3rd and 1/2 paid figures? If so, then the right of voluntary surrender would apply. If you can get the figures either post them here or drop me an email with them and I'll let you know where you stand. Details of the car and approx value would also help in letting you know what your options are.
No Dosh
Backroom Moderator
mailto:moderators@honestjohn.co.uk
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Thankyou.
I'll find out. They're all at the hospital ot the mo.
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Double check though. MiL may (I repeat may) not be liable if the debt is in your FiL name only. If it a joint loan she almost certainly is. Check in case there is any life cover on the loan which will in any event cover the loan. Has he left a will ? If so the executor will take care of this, don't dispose of any property until this is clarified. She realy needs to seek professional advice face to face on this. I will repeat my view that conflicting advice on this thread may lead to confusion and potential loss. It may be worth contacting the Finance Compny they may write off the loan out of goodwill, I have known them to do this in the past. GET PROPER ADVICE.
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Agreed - you need to get proper legal advice and will need to check the finance agreement. Separate bank accounts or joint - and how is the finance being repaid? If separate accounts and paid from the account, then notify the bank if death occurs whereupon the account should be frozen with no further payments made. NB don't forget that any insurance policy in a dead person's name is immediately rendered null and ineffective so make sure that cover is arranged - almost certainly required under terms of a car loan.
You have my sympathies at such a stressful time.
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When my mother died suddenly less than 3 weeks ago she still had some money owing on her credit card.
Because of probate etc they have agreed to freeze all interest on the account and review the situation after 3 months.
I suggest the finance company be asked to do this.
For what it's worth, all companies I dealt with including utilities, car insurance etc, were on the whole very understanding and were able to help. The only slight problem I had was with the local Water Authorety, who sent me the whole year's bill for final payment within 14 days! The woman on the other end had a real problem grasping the concept of it all so I insisted on speaking to a manager who acted immediately to reduce the bill to standing charges only (in accordance with the charging structure for this event) and allow 3 months grace along with everything else.
Your FiLs insurance company will no doubt be very understanding and allow the policy to continue temporarily with named drivers. Marks and Spencer Insurance, who insured my mother were happy to put me on the policy until such time as the car was sold, or was to be kept. In the event my wife now has it and we cancelled my late mother's policy and took a new one out for my wife.
My sympathies to you.
All the best
Hugo
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Thanks for all the advice.
Especially the insurance being voided. My wife went on to his insurance yesterday morning so she could give the car a run out.
He passed away yesterday afternoon.
Thanks for your condolences.
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Graham, sorry to hear of your family's loss. I'm sure I speak for all the Backroomers in offering my condolences.
No Dosh.
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