How to close an insolvent estate with outstanding credit card debt.
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How to close an insolvent estate with outstanding credit card debt.
My brother died 9 months ago without a Will. His estate is insolvent. The attorney tells my dad he must pay the one credit card in order to close the estate. I contacted the cc co and they want 40%. My dad has already paid out more than $10,000 out of his pocket for expenses. Is there some method of having the cc debt removed?
Asked on March 20, 2012 under Estate Planning, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I see no reason why your father needs to pay any money to a creditor to close your brother's insolvent estate. Many states in this country have an expedited process to administer (conclude an estate where there is no Will or trust) an estate where the assets are less than $100,000.
I suggest that you speak with the attorney about such a process in that where an estate has little assets, the creditors essentially take pennies on the dollar. Perhaps you might want to consult with another Wills and trust attorney for a second opinion on the subject?
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