[WSBAPT] paying debts/closing insolvent estate

[Josh Grant]

Richard

I have a case which is now solvent after an incredible number of creditor claims were not filed.  Could you share your form for that petition?

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734


From: Richard Wills 
Sent: Thursday, November 20, 2014 8:56 AM
To: WSBA Probate & Trust Listserv 
Subject: Re: [WSBAPT] paying debts/closing insolvent estate

Krista --- In your circumstance, what I've done is:

  a.. Petition the Court for & obtain Nonintervention Powers, based on the expiration of the claims period & the estate's solvency thereafter. 
  b.. Send a letter to the invalid (eg, late) claimants explaining why their claims are barred & won't be paid. 
  c.. Negotiate with the valid claimants & pay off their claims in the negotiated amounts (in my experience, claimants typically accept 50-90% of their claimed amount so long as they can be paid promptly; I've had loads of claims by DCM Services, who, in my experience, are the most hardball, typically unwilling to accept less than 80-90% of their claims --- most others are in the range of 50-75%). 
  d.. Close with a Decl of Completion. 
  e.. Distribute what remains to the heirs. 
I do my best to avoid a Ptn for Final Distribution unless the estate is truly insolvent & can't be made solvent, as that action is time consuming & expensive.  It's just a lot simpler & cheaper to get Nonint Powers if there's any way to make the estate solvent.  For example, I've written claimants telling them they will get little or nothing if the estate remains insolvent & asking them to release their claim or settle it for pennies so the estate can become solvent & Nonint Powers may be obtained, so the estate may be closed cheaply & efficiently.




On 11/19/2014 2:20 PM, Krista MacLaren wrote:

  Hi Listmates: 

  I have what was considered an insolvent estate upon opening the probate.  The creditor claim period has now passed, and many creditors did not file claims (although actual notice was given to all), so there may be some money left over for the sole heir.  I am trying to decide if it is better to go ahead and accept the few filed claims and pay them, and perhaps send a rejection to a debt collection agency that failed to file a claim but sent demand letters during the claim period, and then file a verified final report and petition for distribution and closing, OR to wait to accept or pay claims, file a verified report and petition asking the court to approve payment of the claims, approve rejection/ignoring of any other creditors (who failed to file claims), payment of attorney fees, funeral expenses, etc., and discharge of PR after paying creditors.

  Suggestions?

  Thanks so much!
  Krista




  Krista J. MacLaren
  Attorney at Law
  Northgate Executive Center II
  9725 3rd Ave NE, Suite 600
  Seattle, WA 98115
  (206)523-6116
  kjm.inc at mac.com

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