Legal Question in Wills and Trusts in Massachusetts
Estate Bankruptcy
I am the executor of an Estate who is trying to prevent the house from being foreclosed upon until I can settle all matters concerning the Will. Is it possible for an Executor to declare the Estate bankrupt and prevent the mortgage company from foreclosing? Can this be a sensible option in some circumstances in order to give myself enough time to settle the Estate business? There is no other asset but the house and no money to keep making mortgage payments until the estate is closed.
2 Answers from Attorneys
Re: Estate Bankruptcy
Yes, there is a procedure for declaring an estate bankrupt. The problem is that it is not clear that the estate is bankrupt. I get the impression that the house is worth more than the mortgage balance, or it would not be a problem: just let the house go.
If there is substantial equity in the house, and you need time to sell the house or for the heirs to bring the house mortgage arrears up to date, you may be able to get the probate court to enjoin the auction for some short period of time.
If there are no other debts that the equity could be used to pay, any of the heirs could file Chapter 13 and stop the auction.
You have not really provided enough information to offer more suggestions.
Re: Estate Bankruptcy
If this matter is in probate court, you may be able to seek a court order halting the sale of the property by filing the appropriate pleadings.
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