Estate Debt Settlement

[Brent_Midland]

Hi everybody its been a long while since ive been around, as my personal debt journey has been quite stable

however, my father passed a year ago and some of the debt claims are from what look to be JDBs. we received on letter from AscensionPoint Recovery Services from Coon Rapids, MI

"Enclosed please find a creditor's claim presented by AscensionPoint REcovery Services on behalf of Synchrony Bank - Lowes"

now either synchrony bank owns this debt or AP "owns" it

whats the next step - a DV letter?

Also i assume there is no point in DVing primary debtholders like citibank...

 

[WhoCares1000]

You might want to ask an attorney that works in estate law for a more definitive answer.

Just because a claim is presented does not mean that the executor has to accept the claim automatically. The first thing you need to do is determine if your father had a Lowes credit card at some point. If he did, then what happened is that when he died, the account went into default and since everything is ran by computers these days, Synchrony probably sold the debt to the JDB who then determined that your father died, that you were the executor, and presented you with a claim. All legal. Now, as the executor, you are correct to contact the JDB and request evidence that they and not Synchrony owns the debt now. I would suggest sending a letter requesting that. If they want their claim to be approved and possibly paid, they will answer your request. You can even make this request from primary debtholders on the grounds that you are getting requests from JDBs for the same debt it that is true.

Now, I am getting ahead of myself here but when it comes to the debts of a deceased person, what they own has to stand good for what they owe. Now, that means that no one can inherit anything until all final expenses and valid debts have been paid. The estate is not required to pay any debts that the executor does not think is valid. Once all debts are paid, the inheritors can get what is left according to the will or state law if there is no will. If there is not enough money to pay all the debts, then the executor is to come up with a reasonable plan to pay as much of the debts as the estate is able to pay and the creditors must write off the rest. The executor or any possible heirs are not responsible for the debt to the extent that the executor performed their duties in a reasonable fashion.

So I would talk to an estate lawyer to ensure that I am correct but I believe you can ask for information from the creditor to determine who you, as the executor, should pay in regards to a creditor claim on an estate.

[Flyingifr]

To add to WhoCares1000's response, most States give the decedent's creditors a narrow window of time in which to present their claims. If you look in the Classified section of your local newspaper you will probably find a bunch of death notices. Those are put there to notify creditors that the clock with which to submit claims against a decedent's estate is ticking and if they don't submit the claim within the Statutory time frame, they can kiss the debt goodbye forever. Here in Pennsylvania that time frame is 120 days after first publication of the Notice.

[Brent_Midland]

thanks for the responses

it is in pennsylvania, although our estate attorney said they have a year from when the notice is published. thats certainly a far cry from 120 days

there really isnt any inheritance thats being held up. hes technically insolvent so even valid claims arent getting fully paid. the handful of real estate holdings he has are already in a family trust separate from his estate (basically two vehicles and a small bank balance) that is being liquidated to cover these debts

i guess i will request DV from both citi and the jdb, cant hurt i suppose

[BV80]

7 hours ago, Brent_Midland said:

thanks for the responses

it is in pennsylvania, although our estate attorney said they have a year from when the notice is published. thats certainly a far cry from 120 days

there really isnt any inheritance thats being held up. hes technically insolvent so even valid claims arent getting fully paid. the handful of real estate holdings he has are already in a family trust separate from his estate (basically two vehicles and a small bank balance) that is being liquidated to cover these debts

i guess i will request DV from both citi and the jdb, cant hurt i suppose

Since you have an estate attorney, I might let him/her send the DV.  The attorney should know exactly what needs to be done.

[BackFromTheDebt]

16 minutes ago, BV80 said:

Since you have an estate attorney, I might let him/her send the DV.  The attorney should know exactly what needs to be done.

There is a difference between this forum and a lawyer. 
 

The posters in this forum are usually non-attorneys who have had to learn something about the law in order to navigate the legal system while dealing with creditors and debt collectors.  We are not legal experts nor do we know the specifics of your situation.  We can generally give pretty good general advice which is often applicable to someone’s particular situation. 
 

A hired attorney is a legal expert who knows your particular situation.  Usually the hired attorney is more knowledgeable about a particular situation.  There are exceptions, such as many attorneys not really knowing about using arbitration as a weapon to encourage a better settlement.  
 

In the OPs case, there is already an estate attorney.  This attorney almost certainly has more knowledge about the case than we do. 
 

In the OP’s situation we can help with what the general situation may be.  If the OP is looking to get a halfway decent overall picture of the situation without racking up the hourly billing for an explanation of general principles, that is useful and others may learn as well.  But if one has an attorney one usually doesn’t need our advice on any specifics unless one suspects the attorney is either incompetent or else doesn’t know about a particular strategy   

 

 

 

 

 

 

 

 

[WhoCares1000]

If you have an attorney on hand to help you out, then certainly go to this attorney and ask for their advice on this debt and if they can find out who has the claim if competing claims were filed. A letter from an attorney will help the JDB stay within the rules too because they will know that if they don't, odds are they are going to be sued.

If you have not done so, inform family members that the estate is insolvent and, in big bold red letters, tell them that they are not responsible for the debt. Once the JDBs find out that they are going to wait for a full year for less than 100% of the debt, they are going to try to bug family members to pay up. It will be easier on the family member if they have something in writing saying to tell them to go away, wait their turn, and accept what was in the estate if they know what their rights are, especially when dealing with a pushy debt collector who certainly knows their job and will certainly not tell the family members their rights.

Once the claims are collected, and with the assistance of the attorney, you determine what the valid claims are and how they will be paid, send them whatever monies they are entitled to from the estate with a note that the estate is insolvent, that they are receiving their fair share under the law, and that is all they will get. If the letter comes from the attorney, that may carry more weight with the JDB than simply from the executor.

Another great thing with using the attorney is that their fees are up front in the estate before any debts are paid. The creditors will have to decide how much they want to fight the estate knowing that they might end up draining the estate of what they would get paid and could get nothing.