need sample letter to creditors of a insolvent trust
Asked on 10/07/09, 10:12 am
1 Answer from Attorneys
Donald Scher
Donald T. Scher & Associates, P.C.
You do not explain if the trust has more debts, than assets, and is therefore insolvent, or if the trust has debts and no assets. In either case, you can write a letter to each creditor stating the facts and then it is up to them how they wish to proceed. The trustee has a legal duty to the creditors to treat them honestly and fairly. If the trust has assets, then the money in the trust can be used to pay attorney fees for the trustee to get advice and counsel.
Answered on 10/12/09, 12:54 pm
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