How to handle creditor claims against an estate that has no assets?
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How to handle creditor claims against an estate that has no assets?
My husband is the executor and beneficiary of his deceased mother’s estate. She had no money or assets when she passed, but had quite a bit of debt. Just when we thought we could close the estate we received letters from Probate Court stating that two of her creditors had filed claims against the estate. How do we proceed with this since there are no funds?
Asked on August 29, 2012 under Estate Planning, Arizona
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
I am so sorry for your loss and for the problems that have resulted. The probate court can act as a de-facto bankruptcy court in this matter and resolve the issue of the claims made by the creditors against the insolvent estate. You may wish to consult with a local attorney as to the necessary forms to be filed and closing the estate. Good luck.
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