Can an estate settle a creditor claim for less? | NC

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Q: Can an estate settle a creditor claim for less than the full balance when there are not enough assets to pay everything? A: Yes — sometimes it can. If the estate does not have enough assets to pay all debts, the personal representative may be able to negotiate a reduced payoff. But they still have to follow the formal claims process and the legal order for paying claims. They cannot favor one…