If the executor/beneficiaries are not willing to loan the estate money, how do bills get paid until the property is sold?

Get Legal Help Today

 Secured with SHA-256 Encryption

If the executor/beneficiaries are not willing to loan the estate money, how do bills get paid until the property is sold?

The estate in question consists of a house and considerable debts that are owed. Both the executor and beneficiary has already spent thousands of their personal money to cover costs for the estate. The estate’s cash/liquid assets will be depleted soon. How do the bills on the property get paid/handled once that money is gone if the beneficiary and executor won’t loan the estate anymore money? Can the estate file for bankruptcy?

Asked on August 16, 2011 Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If there is not enough liquid assets to cover the estate's debts where the main asset is a house, one way of obtaining monies to cover the estate's obligations is for the executor to petition the court sooner than later for an order to sell the home as soon as possible by placing it on the market or, petition the court to use the home as security to obtain a loan for the estate and hope that the court grants the request.

Another option is to have the estate's lawyer work out an arrangement with the creditors to hold off on their payment demands until the home is sold. Most creditors faced with a good likelihood of being paid would be more than willing to wait until the home is sold for payment.

An estate of an individual cannot file for bankruptcy. If there are not enough assets to pay all the crediots in full, they take a percentage of the amount owed them from the estate's net amount after administration expenses are paid pursuant to a court order.

Good question.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption