Q: Dad left credit card debt and a house. Will the house be sold to cover debt in probate
My dad died without a will. He only has a house and car as assets both with loans. He also has alot of credit card debt and medical bills. Will I be able to keep the house or will it be ordered to be sold to cover the debts when I file a probate case or will the creditors put liens on the house instead of a forced sale?
A:
This question is not as easy to answer you you may hope.
First, it is the general rule that assets must be sold to pay debts. So, on first blush, if his debts are greater than the value of his equity in the house and the other assets he has, it probably makes no sense to open an estate. Opening as estate is the only way to sell assets, pay bills and distribute the remaining assets. You can take the car back to the car back to the loan company and turn the car in.
Second, if your father was married when he died, his spouse can file a Petition for Year's Support and ask that she be given the house and the car. If she is given the house and the car, the bills your Dad owed will not have to be paid.
Third, if you are living in the house and are making the payments, you might be able to stay in house for years without anyone disturbing you. Of course, one day, the house will be paid off. Then, you will need to probate your father's estate so that you can transfer the house from his name into the names of his heirs. Creditors can try to open the estate, but I have never seen one do so. I would not tell the mortgage company your father died. I would just keep paying the mortgage. The mortgage company does not care so long as the mortgage is paid. This is a reasonable alternative to opening his estate for the time being.
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