If a probate petition is required for this estate, then there is a priority of debts to be paid. Take a look at Probate Code § 11420 for the priority of debts. If a creditor does not make a creditor claim within four months of the administrators issuance of letters of administration, then those creditor claims can be denied. An insolvent estate cannot file for bankruptcy protection. But the probate court sells assets and prioritizes creditor claims like a bankruptcy court would. This is a slow process and will take months to years to complete.
Answered on Jul 29th, 2016 at 10:18 AM