[WSBAPT] Creditor Claims

[Eric Nelsen]

For what it’s worth:


  *   There has to be a defensible legal basis to reject a creditor claim. I would not do that without something that will stand up under CR 11. The estate is solvent.
  *   It’s PR’s duty to pay the lawful debts. If that requires selling the house, that must be done. I dunno if a creditor would actually force the issue, but I think they would have the right to do so if the PR balked at doing their duty.
  *   If they’re legitimate debts, you can try to negotiate them down and the debt collectors will often (but not always) listen to representations about lack of liquidity, heir with kids living in the house, limited liquid resources, etc.
  *   If son as well as daughter has some extra cash to contribute toward claims, maybe he could add that to the promissory note debt he’s willing to carry.
  *   Is refinance an option, that could create some liquidity?

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Amy Goertz
Sent: Tuesday, August 12, 2025 3:46 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Creditor Claims

Hey Listservers -

I haven’t had to deal with this issue in a very long time and thought I’d run it up the flagpole for some input.

I have an ongoing estate administration where the estate has a house ($300k home with a mortgage of $130k) and about $19k in the estate account.

Decedent’s daughter (PR) and her kids are living in the house and do not want to sell. Decedent’s son is willing to take a Promissory Note to keep the house in the family.

Costs of last illness, funeral expenses and attorney fees are slightly in excess of the funds in the estate account.

There are seven creditor claims - all credit cards - of about $48k. The lowest one is $4300 and the rest are $7k-$9k.

If the PR were to deny the creditor claims or offer them pennies on the dollar (funds would come from daughter), what can the creditors do?

In your experience, are the credit card companies (Chase and AmEx) and/or collection agencies (DCM Services and Ascension Point) likely to pursue the claims further against the estate?

Can/would they force the PR to sell the home? Can they put a lien on the home with added costs, fees and interest? How much interest can they charge?

Thanks in advance for your thoughts/strategy on this.

Amy

Amy J. Goertz, J.D.
Goertz & Lambrecht PLLC
amyjgoertz at icloud.com<mailto:amyjgoertz at icloud.com>

1.888.926.2607 phone
1.877.684.1627 fax
Address for correspondence:
2829 S. Grand Blvd., Suite 303
Spokane, WA 99203

Additional office locations:
510 Bell Street
Edmonds, WA 98020

Goertz & Lambrecht PLLC
www.goertzlambrecht.com<http://www.goertzlambrecht.com/>







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