In-laws, in debt

By THIS IS MONEY
Updated:

 

MY in-laws are retired but owe the bank and credit companies over £40,000. I see no way of them paying this off in their lifetimes. Can a debt be inherited? BD, Gateshead.

Moira Haynes of the National Association of Citizens Advice Bureaux (NACAB) says: You cannot inherit a debt unless you acted as a guarantor for the borrower for a loan or you are 'jointly and severally' liable for the debt with them.

Joint and several liability means you are legally responsible for paying all of the debt along with anyone else who is jointly and severally liable for it.

Even if you have an agreement with them that you are only responsible for a part of it, the lender can still pursue you for the lot. Some debts commonly carry joint and several liability. These include joint bank accounts, joint mortgages and joint credit agreements - the kind of things usually taken out only by couples or people sharing property.

When people die their debts are repaid from their estate before any money can be handed on to their beneficiaries. If there is not enough in the estate to pay the debts then they expire. Find more advice on debt from CABs or the NACAB website www.adviceguide.org.uk.

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