When someone in the UK passes away, any outstanding debts in their name are paid for by their estate, (the assets and savings in the deceased’s name).
But what if there's no estate for the outstanding debts to be recovered from?
You're only responsible for debts in someone else’s name if the debt is joint, or if you acted as a guarantor.
Being married doesn't automatically make you responsible for debt in your spouse’s name.
If no estate is present, or the value of the estate is not sufficient to cover the debt, debts will be required to be paid in a set order until the money runs out or the remaining estate can be split between beneficiaries.
Keep reading to find out everything you need to know about what happens to debt when you die in the UK…