Insolvent estate in california- how to surrender assets?

[calicode]

What is the name of your state (only U.S. law)? CALIFORNIA

HELLO.
This Estate is Insolvent.
There is a house with (if lucky) $10k of Equity
There is a vehichle worth $3-5k
Some recreational (titled) vehichles worth maybe $3k

Debt is over $30-40k
(several different creditors).

Intestate Heir is mother (no spouse).

Mother can walk away from house and let it foreclose.
What do you do with the vehichles?

The estate is not worth paying a Probate Attorney for.
But how do you reconcile these items.

If possible. A family member would like to have one of the Vehicles. Is there any way they could "buy" it?

Thanks for any advice.

 

[LdiJ]

What is the name of your state (only U.S. law)? CALIFORNIA

HELLO.
This Estate is Insolvent.
There is a house with (if lucky) $10k of Equity
There is a vehichle worth $3-5k
Some recreational (titled) vehichles worth maybe $3k

Debt is over $30-40k
(several different creditors).

Intestate Heir is mother (no spouse).

Mother can walk away from house and let it foreclose.
What do you do with the vehichles?

The estate is not worth paying a Probate Attorney for.
But how do you reconcile these items.

If possible. A family member would like to have one of the Vehicles. Is there any way they could "buy" it?

Thanks for any advice.

I would recommend a consult with a probate attorney. I realize you cannot afford to hire one, but consulting one, even if you have to pay for an hour of their time, would likely be a good idea.

Most states have some sort of simplified probate process available for small estates like this one.

 

[calicode]

I would recommend a consult with a probate attorney. I realize you cannot afford to hire one, but consulting one, even if you have to pay for an hour of their time, would likely be a good idea.

Most states have some sort of simplified probate process available for small estates like this one.

Thank you so much for that speedy reply. I appreciate it!
My family member did consult a Probate Attoney and the Attorney said they could take care of it for them for $10-15k. But i don't see the point in that because there is nothing to gain.

I did a relatively easy Probate of my own a few years back. So i have minimal experience with this issue. However, that Probate was solvent and there were no issues. i looked into small estate Probates in California and found the "simple process", but even Probate fees would be about $1,000 (fees, publication, etc...).

The Probate process, i believe would make it so the family member would have to sell off all the Assets (a truck and a couple jet skis, not worth much). Then give that money to the creditors some how. After that is all done, there would still be debt.

Is there a way to just "walk away" without having to go through Probate?

What do you with the Vehicles (they are paid for in full)? How do you "surrender them". (because you can't transfer title on them until all debts are cleared). Then i would imagine you just write a letter to Creditors stating, "There is no Probate. There are no Assests. Sorry for your loss."

Thanks again for any insight or experience with this situation.

 

[curb1]

California small estates affidavit.

http://smallestates.uslegal.com/affidavits-and-summary-administration-laws/california-small-estate-law/

 

[curb1]

What kind of debts are involved?

 

[Zigner]

Thank you so much for that speedy reply. I appreciate it!
My family member did consult a Probate Attoney and the Attorney said they could take care of it for them for $10-15k. But i don't see the point in that because there is nothing to gain.

I did a relatively easy Probate of my own a few years back. So i have minimal experience with this issue. However, that Probate was solvent and there were no issues. i looked into small estate Probates in California and found the "simple process", but even Probate fees would be about $1,000 (fees, publication, etc...).

The Probate process, i believe would make it so the family member would have to sell off all the Assets (a truck and a couple jet skis, not worth much). Then give that money to the creditors some how. After that is all done, there would still be debt.

Is there a way to just "walk away" without having to go through Probate?

What do you with the Vehicles (they are paid for in full)? How do you "surrender them". (because you can't transfer title on them until all debts are cleared). Then i would imagine you just write a letter to Creditors stating, "There is no Probate. There are no Assests. Sorry for your loss."

Thanks again for any insight or experience with this situation.

There ARE assets. Those assets need to be used towards the debts that are out there. This will need to be probated.

 

[calicode]

What kind of debts are involved?

credit cards (in debt collections) $15kish?

and a felony court case debt $30kish?

 

[calicode]

There ARE assets. Those assets need to be used towards the debts that are out there. This will need to be probated.

But is it a family member's obligation to pay for the act of Probate to sell these items to give money to the creditors?

If you can't inherit a person's debt. Why would need to go through that work and expense? The estate can't pay for it. There is no cash. No life insurance.

 

[Zigner]

credit cards (in debt collections) $15kish?

and a felony court case debt $30kish?

And there is about $15,000-$16,000 worth of assets to go towards that debt.

 

[tranquility]

I don't think the forum is recognizing the OPs problem. He doesn't want to open probate. He has no duty to do so. He just wants to know where to park the cars so the creditors can pick them up.

If one were to be silly, one might tell the OP to park the car illegally. The problem will take care of itself.

 

[calicode]

I don't think the forum is recognizing the OPs problem. He doesn't want to open probate. He has no duty to do so. He just wants to know where to park the cars so the creditors can pick them up.

If one were to be silly, one might tell the OP to park the car illegally. The problem will take care of itself.

That is accurate.
How do you "park the cars" (legally) to let the Creditors "collect" them?
So we don't have to go through the work of having to sell them and divide up money to give to the Creditors.

 

[calicode]

And there is about $15,000-$16,000 worth of assets to go towards that debt.

Theorhetically there is that much.
Probably less.
House will just go into foreclosure, so that leaves just leaves a junky truck bluebook $3-5k,
a jetski that doesn't work and a dilapidated camper.

 

[tranquility]

How do you "park the cars" (legally) to let the Creditors "collect" them?

You open probate or submit an affidavit and then go through the probate process and then ask the judge. But, that's not what you want to do.

My reply was that IF the cars happen to be parked illegally, the police will ticket and eventually tow the vehicle and it will be sold for storage fees if no one claims it. Problem solved. (Except for the fact the person moving the vehicle would be committing a crime.)

The real answer is that there is no answer. The law anticipates someone opening probate or properly disposing of the assets and resolving debts. With the market being upside down on houses for many, this particular problem is going to come up more and more. The house problem will solve itself through foreclosure. The car problem is not so easy. Getting it stolen would work too.

 

[curb1]

What has the California DMV said about changing the titles on the vehicles? Or, you could just leave the cars where they sit and let them go.

 

[tranquility]

The DMV will allow a change of ownership with an affidavit. However, the affidavit cannot be truthfully completed in an upside down estate. (Unless the signer wants to guarantee all the estate's debts.)