What to do about an insolvent estate?
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What to do about an insolvent estate?
I am the executor of my stepfather’s estate. He has no personnal or real assets and owes $30K. Do I file Chapter 7 for the estate or just close the estate insolvent?
Asked on April 18, 2012 under Estate Planning, Arizona
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am so sorry for your loss and for the problems that have arisn. As the executor you have the repsonsiblity to prioritize the debt of the decedent and to pay it off in accordance with state and federal law regarding such. Generally medical bills and funeral expenses are paid first, secured then unsecured creditors. I would get help if I were you. It can be overwhelming and as the fiduciary you are placed in a very delicate position. Good luck.
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