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Debt settlement negotiation and estate in probate

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roottoot

Junior Member
My question basically concerns debts from creditors from 3 years ago and my dad's estate. When dad passed the estate was small and classified insolvent by probate. Although creditors filed claims, nothing was done and estate closed. Exactly 3 years and 5 days from dad's death I bring in the mail and there's letter from an insurance company saying they have "been informed" that dad has died and they "now" wish to distribute an annuity beneficiary designation, payable to the estate of my father. Great, why not 3 years ago? Anyway, I reopen estate, recontact old creditors, wait the 6 months for them to reassert claims(and they don't), etc.,etc.. Let me add too, that my state's SOL has run and the creditors know it, and they know that I know it. Now, just this week, I get a 1099-C from the last of the creditors; others had already sent theirs in 2009-2011. I'm getting ready to file the last of the estate taxes and then make my trip to probate to file an accounting. Probate is going to raise the issue of the creditors. All my research indicates that although these creditors can't do anything in court because of the SOL, the debt remains "owed" no matter what. Well, what do I do? Do I try and negotiate a debt settlement, and if so, for how much, 100% ? About half of the original 9 creditors either assigned or "sold" their accounts to collection agencies. If they "sold" a $10,000 account to a collector for pennies on the dollar, I hope they don't think I am going to pay full amount to a collection agency while the original account card holder gets burned. But too, if a credit card company sells their $10,000 debt to someone else for a $1,000, that's their decision. The agency who buys it low is now wanting to get as much as they can. What I've read says don't deal with collectors on the phone. Don't trust them. They don't have to tell you everything;maybe whether it was assigned or bought,but not for how much. Plus too, it's been brought up that where is the line between legal obligation and moral obligation. Probate is going to pressure me and I have to do something. Do I pay ---who,what,where,when,how,or why, and to what degree or extent??? I am not so willing, to be honest with you, about paying the "full" amount. I never was. Do you know how much interest they were charging dad? They have already been paid back to some degree, with interest charged and added to the principal. I am simply asking for some ideas or suggestions on the best way to pursue debt settlement negotiations, or if in fact, do I need to? Any response will not be interpreted as legal counsel. I just thought there is someone very familiar on how creditors work, and what to look out for during negotiation. $40,000 is a lot of money. I don't think my aunt intended to leave her little brother an annuity as a death benefit, and having it go toward paying his debt. Of course that means nothing I know, but still. And why did that insurance company "hold" it for 15 years? I read something about computer programming that alerts them to "the 15-year mark". Personally, I think they should have been on this! Well, the SOL has run out, so I'm not concerned about that. Just negotiation, and if so, how much? I'm still steamed that probate made me get a bond when the will explicitly states no necessity for giving bond. I don't think they know what they are doing and that's why I haven't bothered asking them anything on this issue. I need to go outside! Any help from someone would surely be appreciated. Thanks a lot in advance. Mark
 
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