Can an administrator of an estate file for bankruptcy? - Estate Planning Law Questions and Answers- LawQA.com

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Can an administrator of an estate file for bankruptcy?

I have been appointed administrator over my mother estates and she owes the bank $125000 for two loans and the property and land and two cars and a house trailer or the collateral. Can I file a chapter 13 or 7?

Answer By Erven Nelson

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You need to talk to a good probate lawyer and bankruptcy lawyer. I can provide some referrals. I need more facts to make a good response. Generally speaking, an estate does not need to file bankruptcy because all debts can be handled through the probate process.

Answer Applies to: Nevada
Replied: 3/30/2013

Answer By Sally Hamblin

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You need to know what you are doing. No, you cannot.

Answer Applies to: Michigan
Replied: 3/2/2013

Answer By Kathleen DeLacy

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It's not your debt so you don't have to file bankruptcy. If estate doesn't have asets they don't get paid.

Answer Applies to: Delaware
Replied: 2/28/2013

Answer By Douglas A. Tull
DOUGLAS A. TULL, P.C.
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No. At least the estate can't. If you are insolvent, you are insolvent - and should make an effort to close the estate. Remember, though, that in Michigan, Creditors rights come after certain allowances for claims that have priority - such as administrative including legal and accounting, funeral and burial expenses and certain "allowances" as well as taxes. So if you have an attorney assisting you - consult with him or her to set the proper course of action.

Answer Applies to: Michigan
Replied: 2/28/2013


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You can file bankruptcy for you personally. I do not know why you would want to file bankruptcy of the estate. As administrator you are not responsible for the bills of the estate. You are only responsible to gather up and sell assets and then pay creditors if you can.

Answer Applies to: Nevada
Replied: 2/27/2013


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As the personal representative you can call the creditors and negotiate the balance due. Many creditors are open to negotiate balances owed. Sending them an inventory also will show the creditors what is in the estate and will show that the estate may be close to insolvency.

Answer Applies to: Florida
Replied: 2/27/2013


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If you are in Georgia, I suggest you sit down with an attorney to review this matter to consider all of the options. As the administrator of the estate, unless you have done something you should not have done, you are not personally responsible for the debts of the estate.

Answer Applies to: Georgia
Replied: 2/27/2013

Answer By Barry D. Broome
THE BROOME LAW FIRM, LLC
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You can work it out with all the creditors by giving the property that is secured to the creditor. Sell those items that?are unsecured and pay a percentage to each unsecured creditor.

Answer Applies to: Georgia
Replied: 2/27/2013

Answer By Carl C Silver
CARL C SILVER ATTORNEY AT LAW
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No. The estate can't file bankruptcy. If the liabilities exceed the assets, divide up the personal property (anything that isn't land or vehicles) and walk away. The creditors will foreclose on the land and repossess the vehicles.

Answer Applies to: Michigan
Replied: 2/27/2013

Answer By C L Huddleston

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This is not a bankruptcy matter. Assuming the assets in the estate are less than the debts, you have what is known as an "insolvent estate." Such estates are more complex than regular estates, and you should not try doing this without expert counsel. The good news is that the Executor or Administrator gets paid a "commission" before the creditors, at least 2% of the first $100,000 and 1% of everything else, but the court can approve more. Sometimes a good attorney can negotiate settlements with the creditors so that, after paying the Administrator, lawyer, costs, taxes and creditors there are some assets remaining. You need an expert probate attorney to represent you in doing this.

Answer Applies to: Ohio
Replied: 2/27/2013

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