Q: As Administrator of a nearly insolvent estate with all unsecured debt, how do I determine which ones get paid?
There is no liquid money available, but I do plan to sell a property that will leave only about 40k after commissions. The credit card debt alone is $44k. Must I treat all credit card debt and personal loans equally and divide what little money is left to give them each a token? Or can I chose which ones to pay? Any tips on negotiating with the credit card companies? I feel they can write off debt more easily than a local credit union or a friend who has provided a personal loan that was documented. There is also a contractor that is owed for services rendered the same week she passed away who I would like to pay, but there just isn't a lot to go around. Are there rules about this? Thanks in advance!
A: The only way to do this with certainty is to pay pro rata and then do an accounting. But, the credit cards will definitely negotiate. A lawyer can help. You want to avoid an accounting if at all possible.
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