When a probate attorney acts as your personal representative, your heirs may benefit from his or her experience in settling complex financial affairs. Your outstanding debts and your estate’s taxes generally need resolving before the court transfers property to those named in your will.
The Michigan Legislature’s website notes that creditors may file claims against your estate to recover unpaid debts. A seasoned attorney could discuss matters with aggressive creditors. You may prefer that a professional communicates with collectors while your heirs grieve their loss.
When may creditors recover from my estate’s assets?
After death, your personal representative must publish a notice to creditors in a public newspaper and inform them you died. Under Michigan’s statutes, creditors have four months from the date of publication to file a claim through the probate court.
As reported by U.S. News, creditors may recover money owed on an unpaid car or home loan from your estate’s assets. With secured loans, a lender may repossess your car or foreclose on a property if your estate cannot pay the remaining balances.
When may creditors seek repayment for my unsecured debts?
If you have credit card accounts owned jointly with your spouse or an adult child, creditors may hold a co-owner liable for unpaid balances. With your own accounts, however, creditors may recover from your estate’s assets.
A probate attorney could work with your creditors to settle unsecured debts when your assets cannot cover them. Unpaid student loans and credit card bills may obtain forgiveness, and a creditor may write off balances that appear difficult to collect on.
Because Michigan’s laws allow you to name a trusted personal representative to settle your estate, you may choose an individual such as a probate attorney. A knowledgeable professional could resolve financial issues quickly so your heirs may receive the assets you wish to leave them.