Asking on behalf of a friend
His mum chalked up around 80k in credit card debts from various banks. Now that his mum is no longer around, is my friend(who is a minor) obliged to settle any outstanding payments with the banks?
The banks has threatened to seize his HDB flat and sell it to recover the debt. Is this legal? Can anyone advise?
no longer around means?
went to be with god or è·‘è·¯?
uh oh...
Is the mum dead?
If his HDB flat belongs to his mother, I think the bank will sell away the house to take back the $80,000 and then return the balance back to his mum's account. The bank will ensure the mum pays back all the $80,000 before allowing family members to inherit the amount. But if the mum's assets are less than $80,000, for example $70,000, probably the bank will have no choice but to waive the $10,000, but that is after full deductions from his mother's CPF accounts and all other assets.
Originally posted by FireIce:no longer around means?
went to be with god or è·‘è·¯?
Yes. Went back home to heaven
Originally posted by Junyang700:Is the mum dead?
If his HDB flat belongs to his mother, I think the bank will sell away the house to take back the $80,000 and then return the balance back to his mum's account. The bank will ensure the mum pays back all the $80,000 before allowing family members to inherit the amount. But if the mum's assets are less than $80,000, for example $70,000, probably the bank will have no choice but to waive the $10,000, but that is after full deductions from his mother's CPF accounts and all other assets.
Yes the HDB flat is in the mum's name, but he has 3 siblings. So now I think the Flat will be divided evenly between them. The mum did not leave a will.
But can a bank even seize a HDB flat to recover a non-housing debt?
Downgrade and pay off the debts.
80k not a lot
just sell off the house
at a good price will do
maybe if can wait the market
to be hotter then sell lor
otherwise, go and have a nice talk
to the bank lar
Is he the guarantor?
Its Credit Cards Debt. The mother died without a will. There is 3 children and TS friend is a minor.
And its not related to housing loan. Plus its a HDb flat.
All in all, the credit cards company can only claim from the mother's estate. Meaning her assets after she passed on. Which usually wont be the case, because credit cards have debts insurances on the card owner.
You need to ask a lot more questions as well and furnish us more answer. But instead of asking this online. Can you go and get proper advise with people that actually have qualifications and experiences about this matter?
This matter should involved a experienced financial advisor, which can also be known as a insurance agent, though I prefer insurance brokers because they are usually better cross trained in various fields like finance, insurance, loans and estate issues.
And if TS is asking about this matter because the friend tells him/her they need to borrow money. Then TS.....please do not be a sucker. Direct the friend to their home lawyers & elders for advises.