Is a person takes out an unsecured loan on a car and dies just two months into the agreement does the debt die

my late husband took finance for a car two months before he suddenly passed away. Now the company are pressing me for full payment of the loan. I was told that because it was an unsecured loan, the debt dies with my husband. The company are now trying to claim off my husbands estate but he died without leaving a will and did have enough assets to go to probate so probate has not been asked for. Does anyone know my position on this?

Loans die with the debtor. That does not prevent a creditor applying to the estate.

Was an insurance taken out to protect the loans repayments?

Its worth checking the loan agreement .

Generally the creditor will not pursue unless you jointly owned a property with the deceased and a mortgage exists. Its up to them if they wish to continue chasing but you also have a choice to stand your ground. Whatever you do dont pay them out of your own funds. They will soon tire of chasing but as you were not part of the original contract they can not make you pay....although they may try to frighten you into thinking so

Debit becomes the property of his estate. If you don't file an estate, they will continue to try and collect from you and may enter into suit forcing a probate decision (depending on the state you live in). Creditors claims against a dead person belong to the probate court to resolve.

Speak to a solicitor, they give free advice for 30 mins over the phone.

if you are in the uk inform the company your husband is dead and as not left any estate as such and they cannot pursue any claim on his estate. that should be the end of the matter. the loan was not secured to title of the car therefore the car is yours. A SIMPLE TEST IS TO HPI THE CAR if it does not show this will confirm what I have just told you. take no notice of the loan company they do not have any claim against you either.
if your husband had left enough money to apply for probate they would have been entitled to payment as it is now they have no entitlement at all

rob k YOUR SOURCE MY MUM WORKS IN A SOLICTORS OFFICE I cannot believe you think this is a source what planet are you from

I am so sorry to hear of your loss - this must be a dreadful time for you, Elco.

Talk to a probate law clerk or a solicitor. The law is different in England & Wales as it is to Scotland or Northern Ireland so I cannot give you accurate advice.

The original loan documents will hold the key, especially if he took out insurance with the loan in case of illness or even death (sorry) and the company may just be chancing their arm to force you to part with the money when you may not need to.

There may be a provision in the original loan documents whereby the car can be returned 'as is', as long as it is in a saleable condition and not damaged. But watch out for possible penalties for early settlement, especially if it was the dealer who made the loan arrangements.

The debt may still be applied to his 'estate' along with any other debts (credit cards, etc) - unsecured just means that it wasn't secured against property or assets.

The car cannot have depreciated much in two months - I'm sure that an amicable settlement can be reached. I cannot believe they are being so tactless when you are so vulnerable.

I hope that this matter resolves as quickly as possible for you. You don't deserve this.

.

If the loan is unsecured, and the car is not listed as collateral, then the bank cannot take the car without court permission. The bank could file a claim against the estate in the probate court, if you file for probate. If for some reason you don't need to file for probate, the bank could simply sue your husband's estate and serve you as the executor. If they win, they would have the right to be paid out of whatever assets your husband had in his name, and this would include the asset of the car. But the point is, that unless the car was collateral for the loan, they can't repossess it without going to court, winning a judgment, and then properly enforcing that judgment.

The fact the car is only two months in your possession why do they not simply take the car back this should take the pressure of you, pressure you obvioulsy do not need?