What Happens If an Estate Cannot Pay All Creditor Claims? | NC

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Q: What happens if an estate does not have enough assets to pay all creditor claims? A: If an estate cannot pay all valid debts, it is considered insolvent. The personal representative does not pay creditors in the order they ask. Instead, the estate must gather the assets, review each claim, wait through the creditor claim period when appropriate, and then pay claims in the legal order of…