When a debtor passes away, the debt does not die with them — it becomes a debt of the deceased's estate. Recovery must then proceed against the estate rather than the individual, and the process involves dealing with the executor or administrator of the estate.
How Merion handles deceased debtor cases:
- Sensitivity first. We approach these cases with care. When we become aware that a debtor has passed away, we pause routine contact immediately and review the account before taking any further steps.
- Identifying the estate representative. We attempt to identify the executor (named in a will) or administrator (appointed by the court where there is no will or the executor cannot act). Recovery correspondence is directed to them in their capacity as estate representative.
- Proof of debt. Creditors who wish to be paid from the estate must register their claim. We handle the preparation and lodgement of a proof of debt on your behalf as part of the recovery process.
- Timing. Estate matters take time — the estate must be administered, assets realised, and creditors paid in the order required by law. Secured creditors are paid first; unsecured trade creditors are generally in the same class and rank equally.
What you should do: If you become aware that a referred debtor has passed away, let us know immediately so we can pause contact and transition the account to the appropriate process.
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