Insolvent Estates

Dealing With an Insolvent Estate? We Can Help You.

What is an Insolvent Estate?

When it comes down to it, an insolvent estate is a bankrupt estate. The process for taking care of an insolvent estate is similar to the process for going through a chapter 7 bankruptcy as an individual. However, even in insolvent estates, we work hard to see that the family, and especially any minors or children, receive the benefits of the estate.

During the course of the process, available assets are liquidated for the benefit of the beneficiaries and family members, as well as to pay off creditors and collection agencies, and the rest of the debt is eventually discharged. Going through the process will also allow you to transfer assets from the estate without having to worry about claims of ownership from creditors.

If you are the executor of the estate, it is important to go through the insolvency proceedings to erase the debt. If you do not, you could be held liable for the debts of the estate, allowing creditors to go after your personal assets. At Blumenstiel, Evans & Falvo in Gahanna, Ohio, we help people tie up the loose ends of insolvent estates and protect their personal assets.

Don't let an insolvent estate ruin your financial outlook. To discuss your options with an experienced lawyer, contact us today for a free initial consultation.

How Does the Insolvency Process Work?

The first step in taking care of insolvent estate is notifying the courts that your estate is insolvent. From that point on, the process is very similar to bankruptcy. Creditors will be paid off in order of their priority. If a creditor's claims were not filed properly, they will not have to be paid. At the end of the process, all remaining debts will be discharged.

As a fiduciary or executor, if you have begun to administer the estate and do not go through insolvency process, the liability for the estate's debts will rest on your shoulders. When this happens, creditors can go after your personal assets, perhaps destroying your own financial wellbeing.

Don't place your personal assets at risks. To discuss your situation with an experienced estate attorney, call 614.428.0027 or contact us by e-mail.