How is a deceased person's estate handled?
A person’s estate is made up of their money (including any insurance pay outs), investments, any property they own (or jointly own) and their possessions.
The money in their estate will be used to cover any funeral and administration costs first. If there’s any money left after this it'll need to be paid towards any debts the person had.
In some situations if there's money tied up in a property the creditors could ask for the house to be sold and the money repaid from the sale. If you don’t want the house to be sold then you would need to come to an arrangement with the creditor to repay the debt at a rate you can afford.
Most unsecured creditors will normally write off a debt (like a personal loan or credit card) if there's little or no money left when a person dies. They’ll normally only pursue the debt if there’s a large estate.