QUESTION
Can the administrator of the estate file bankruptcy?
Asked on Oct 15th, 2011 on Bankruptcy - Colorado
More details to this question:
What happens when someone becomes administrator of an estate and debts are not settled? What happens to the property? What are the options to settle the debt? Can the administrator of the estate file bankruptcy and keep the property and settle the debts this way?
5 ANSWERS
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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An estate is not an eligible debtor.
Answered on Jul 08th, 2013 at 8:32 PM
Glen Edward Ashman
A deceased person can't file a bankruptcy case. That's what probate is for. But an existing case can be dealt with in bankruptcy thus eliminating the need for any probate (that only works if the deceased filed before he died).
Answered on Oct 20th, 2011 at 12:52 PM
Family Law Attorney serving Knoxville, TN
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Patel & Eisenhower, PLLC
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The administrator may file a Notice of Insolvency with the Probate Court if there is not enough money or assets to pay the debts/creditors owed. The administrator may choose to sell the property and use the funds received to pay off the debts.
Answered on Oct 20th, 2011 at 12:27 PM
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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Any debts of a decedent must be settled through probate. The administrator of a decedent's estate cannot file bankruptcy on behalf of the decedent or of the estate of the decedent.
Answered on Oct 19th, 2011 at 6:38 PM
I assume you mean a decedent's estate. A non-human entity can file bankruptcy but it is not entitled to a discharge. It is normally done when there are assets but not enough to satisfy all debts. If a bankruptcy is not filed, the estate must publish a notice in the newspaper and creditors have a certain length of time to file claims. Spouses and children have a special claim to estate assets. Debts can always be settled if the creditor agrees.
Answered on Oct 19th, 2011 at 5:41 PM