Q: How do I determine how the unsecured creditors are paid if there’s more debt than assets in NC small estate?
Given it is a small estate I don’t have to do notice, but I have received notice/bills from more creditors than is money to pay. Do I pay pro rata? What happens if more creditors show up after I have closed the estate? Who is liable?
A: I don't know who told you that you do not have to publish a notice, but the notice is very important in estates with very little assets but lots of debt. The order in which you pay debts is determined by statute, and each class of debt is paid out pro-rata if there isn't enough to pay the debts completely. If you fail to notice creditors properly and pay out debts in an improper order, then the administrator can be in breach of their fiduciary duties.
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