Insolvent Deceased Estates

An insolvent estate is one where the assets of the estate are not sufficient to cover the money owed to creditors. Deceased Insolvency can be an extra burden at a difficult time.

The number of insolvent estates has also increased over the last few years; perhaps this is because of the complexity of our modern financial lives. Whatever the reason, it is important to spot an insolvent estate and act as soon as possible to resolve the situation. If the executor or administrator dealing with the estate doesn’t act appropriately, they could potentially end up personally liable for their actions.

Some debts may be personal or may be covered by an insurance policy, for example, a life policy tied to a mortgage. Others may be joint debts, such as joint credit cards or overdrafts. Whatever the circumstances, though, these issues must be dealt with.

In effect, the rules of bankruptcy also apply to an insolvent deceased estate, with some key exceptions. For example, reasonable funeral costs and testamentary expenses are paid before preferential and unsecured creditors, but after secured creditors. That means there will be a lot to deal with and advice is vital.

Clearly, then, this is a very complex area in what will already be a very difficult time. Our insolvency practitioner not only has many years of experience of dealing with Insolvent Deseased Estates, but is also specifically trained in Probate and Estate Administration. 

We understand this is a difficult time, but sadly, the insolvency must still be dealt with. We are here to help.