Hi, my name is Sharon. I thank all of you in advance for your help, I need it. My father died last Dec. 20th. He owed one credit card $10,000 dollars. This had been turned over to a collection agency. My father had no will. There were 2 insurance policies, which allowed me and my brother to give him a decent funeral. His only other possessions were his house, which is in bad shape, a old car, and about a couple thousand dollars in his checking/ saving accounts. The collection agency sent a letter to contact them to make arrangements to pay his debt. I have not seen the letter yet. We had called all the credit card companies and sent death certificates to them. Do we have to get a lawyer, this is another expense that we do not need, but will if we must. Thanks, Sharon

You should gather up all the financial information and have a lawyer review it. You didn't mention whether the house has a mortgage. If there is no mortgage, then you may need to apply to administer the estate in the county probate court to have the title changed to his heirs at law, or to get permission to sell it. If there is a mortgage, the mortgagee will foreclose and take care of that problem. If the bank accounts are in his name only, you may need assistance of the probate court for that also.

His estate is liable for the debt. The two insurance policies fall outside the estate so they wouldn't be included. Whoever is executor of the estate needs to get a valuation of the estate. Once that is done, you can decide how to proceed. If the value of the estate is less than the outstanding debts, then you simply inform the creditors of that fact. Otherwise the executor liquidates the estate and pays the creditors then the heirs can divy up the balance.

I don't think you need an attorney just yet. You can tell the agency that requested you make arrangements to pay the debt that there was almost no cash left in the estate. What little case there was went towards funeral expenses (they come first). The only other asset in the estate is a run down house.

Who is the executor of his estate? If none, a lawyer to guide you through this process, is the best way to go.

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Originally Posted by Inhelp212

Hi, my name is Sharon. I thank all of you in advance for your help, I need it. My father died last Dec. 20th. He owed one credit card $10,000 dollars. This had been turned over to a collection agency. My father had no will. There were 2 insurance policies, which allowed me and my brother to give him a decent funeral. His only other possessions were his house, which is in bad shape, a old car, and about a couple thousand dollars in his checking/ saving accounts. The collection agency sent a letter to contact them to make arrangements to pay his debt. I have not seen the letter yet. We had called all the credit card companies and sent death certificates to them. Do we have to get a lawyer, this is another expense that we do not need, but will if we must. Thanks, Sharon

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There is no executor, the policies were in my name, my brother and I did the funeral arrangements together. There were also other credit card companies.

Someone has to act as the executor. Either you or your brother. You need to get a valuation of the estate.

Since the insurnce was in your name, it did not have to be used for funeral expenses. So you can, therefroe, take whatever cash there was and reimburse yourself for what you paid for the funeral.

So the only real question is what is the house worth and is there still a mortgage on it.

Thanks, Sharon