Legal Question in Wills and Trusts in New York

Credit Card Debt

My sister passed away without a will. I filed papers with the court to administer her small estate. She had several credit cards with balances. After sending the death certificate to several of them, I never received any further bills. Howver 2 of them turned the issue over to a law firm that continues to send me letters inquiring about the estate, and who is responisible. I have not responded to date. An attorney I spoke with said that the credit card companies generally have insurance to cover these losses. Do I pay these bills?


Asked on 8/05/03, 2:16 pm

5 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Credit Card Debt

The credit card balance is a debt of the estate. As administrator you have responsibility to pay this from available estate assets. If the assets are less than the balances due, you can offer to compromise the debt by paying cents on the dollar. The insurance is not carried by the card company but is offered to the debtor at a small monthly fee. You should inquire if there was such insurance in effect. If so, a claim should be made. If not, this is a debt to be paid. I need more information on the estate itself, assets and liabilities to give you more accurate information.

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Answered on 8/06/03, 5:11 pm
Stephen Loeb Law Office of Stephen R. Loeb

Re: Credit Card Debt

Send them copies of the letter you sent to the credit card companies and a copy of the death certificate and you should be OK, the law firms are fishing for viable assets.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 8/05/03, 2:27 pm
Arnold Nager Arnold H. Nager, Esquire

Re: Credit Card Debt

Assets of the estate should be used to pay the debts. If the assets are insufficient, send each creditor their pro-rata share together with a letter explaining why you cannot pay in full.

Endorse the back of the check, "Accord and satisfaction" and mark in the lower left hand memo spot, "Payment in full."

If they deposit the check, the estate is released from further liability.

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Answered on 8/06/03, 10:08 pm
David Slater David P. Slater, Esq.

Re: Credit Card Debt

If the estate had assets they should have been used to pay off debts before any distribution.

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Answered on 8/05/03, 7:23 pm
Andrew Nitzberg Andrew Nitzberg & Associates

Re: Credit Card Debt

I am sorry for your loss.

This is not a complex legal question. Whatever assets your sister had form her "estate". The assets of the estate should be applied to pay her outstanding bills. If the estate is not large enough to cover all of the bills, then the creditor has a loss.

You do not "inherit" her debts. In addition, small personal items are generally not required to be a part of the estate. You may take such items without taking any responsibility for the debts.

You are welcome to a consultation at no fee at my offices at 42 west 44th st., NY,NY. Please call for an appointment first. (646) 591-5786

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Answered on 8/05/03, 10:30 pm


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