This will not stop creditors from contacting you, however, so it may be best to resolve the estate personally.You can liquidate the assets in the estate and repay the creditors a portion of the remaining cash equivalent to the portion of debt the decedent owed the creditor. When the owner of the estate passed,they left behind a greater amount of debt than equity.This means the estate must be sold off in order to repay debts, but there may still be outstanding debts to pay.It is up to the beneficiaries to determine how the insolvency will be resolved.There is no correct way to handle the process, and each individual will have to choose based on the circumstances of the individual estate in question.Attorney fees will quickly eat up those few thousand dollars. One is to handle the probate and try to handle the debts on your own.The other is to enter probate and pay attorney fees out of pocket.
Do not let time be the reason to avoid probate, instead keep in mind it can be a serious disadvantage to go through the court system.
You will save money by handling issues on your own.
When an estate is insolvent, most jurisdictions will not permit nonintervention.
In some cases, the attorney fees may climb so high that nothing is left for the creditors.
Insufficient funds can be a problem in small estates where only a few thousand dollars are left to repay debts, even if the debts are small.