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Settling Creditor Claims Attorneys Allentown, PA Estate Litigation Appeals Lawyer Philadelphia, PA

When a person dies, all debts must be settled. This process is part of executing an estate and may require an Allentown, PA attorney for settling creditor claims. 

Understanding the Process of Settling Debt in an Estate

As the executor of an estate, you will have many responsibilities including the need to resolve all debts. This is true regardless of whether or not a will existed. The difference between a person dying away testate (with a will) or intestate (without a will) primarily comes down to whether the court decides who will handle the estates’ affairs. When there is no will, the court will name a personal representative, or executor. In any case, this person assumes a fiduciary role to the beneficiaries of the estate. It will be up to them to act within the financial interests of the estate. In order to do this, a strict process should be followed. 

The Probate Process

Apart from filing documents with the probate court, the executor will be responsible to notify all service providers and creditors who may have an interest in the estate. As a settling creditor claims attorney in Allentown, PA might tell you, this step allows anyone with an interest to file a claim against the estate within the set period of time. The executor must also notify beneficiaries; afterwhich, an inventory of the estate must take place. The inventory will give the executor an idea of the estate’s value, and from this, debt can be settled. Keep in mind, some assets will not be part of the estate. These might include insurance policies, 401(k)s, and brokerage accounts. 

Once this part of the process has begun, our Philadelphia probate attorneys might advise the executor in examining whether there are any claims on the estates’ secured debt. If there is, these must be settled. Only once all debts and taxes have been paid will the estate be distributed to beneficiaries. 

Should no will exist, the intestate laws of Pennsylvania will apply. There are a number of rules relating to dying without a will in Pennsylvania. In general, if the decedent is survived by a spouse, the spouse will receive $30,000, plus a portion of the estate. Our Allentown, PA settling creditor claims attorneys can discuss the specifics of these laws with you during a consultation. 

What if the Estate Cannot Pay All Debts?

When an estate does not meet the monetary obligations of creditors, the IRS, and claims from beneficiaries, the estate is said to be insolvent. It will then be subjected to abatement statutes. Generally, this means the debts are to be paid in the following order:

  • Reasonable funeral and burial costs
  • Estate administration costs
  • Federal taxes and state taxes
  • Reasonable medical expenses of the last illness/ailment
  • Any judgements ordered against the decedent
  • All remaining claims

As soon as the estate’s assets have been depleted, remaining debts are discharged. Exceptions to this might include when:

  • Joint account holders may be liable for any remaining debts owed. 
  • Co-signers may be liable for the remaining balance. 
  • Community property states might leave the living spouse responsible for debts acquired during the marriage. 

In the event an estate has debts that exceed its assets, or any debts that give rise to questions, a settling creditor claims attorney in Allentown, PA should be consulted for advice. Call Klenk Law today. 

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Elizabeth Ray

Peter and his associates were a pleasure to work with. He explained the process clearly and provided assistance nearly instantaneously. Highly recommended for trusts-and-estates-related needs!

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A Google User

Peter Klenk was great in leading us in the estate planning process.He was clear in describing the various steps and what they would accomplish. We were well satisfied and pleased that we had Peter to guide us.

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Darryl J.

Answered my question quickly and referred me to a colleague that could handle my problem

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Anne W.

I saw four lawyers and was told by all of them; I should just forget contesting my mother's will. I knew what happened, but it is very hard to prove undue influence. I contacted the Law Offices of Peter L. Klenk & Associates. Attorney Amanda DiChello took my case. They were very honest and upfront about what would be involved trying to prove what I knew was true. Attorney DiChello may be young but she is extremely knowledgeable and skilled. She listened and understood what I conveyed to her. She knew exactly what information to use and crafted an outstanding interrogatory and many powerful depositions. Attorney DiChello understood the various emotional feelings this case created for my family and me; she was always there for us with a kind and encouraging word. We went to trial. The amount of work which she and her Paralegal did for the trial was incredible. They both knew my case inside and out! Attorney DiChello's powerful interrogative and thinking skills produced a positive outcome. Attorney DiChello did what other seasoned lawyers said was impossible!

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Nafeesha. B

When it came down to picking the right attorney to handle my affairs, I knew right away it was this firm. From speaking to their secretary to speaking to Peter I knew I was making the right decision. After only a few mins Peter knew right away what I was looking for and handled all my questions professionally and even gave me great feedback that put my mind at ease. All that without even giving a single penny! So of course I hired him! So far so good...

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