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Thanks for your question. You have my sympathies.
A persons debts must be settled from the available assets the deceased had at the time of his death. This means that any monies realised from the assets that your nephew had must go towards settling the debts but if there is not enough money to redeem the loan then the loan company will have to write it off.
You (or whoever is dealing with his estate) will have to contact the finance company to inform them of the situation and that you are prepared to pay any monies realised from his assets to them but do not think it covers the amount outstanding.
Provided no other person guaranteed the loan and his assets are used to pay of a portion of the loan then no-one will incur further liability.
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