Is an estate liability for debt on repossessed automobile?

[h&sllc]

Maryland - A relative of mine died and owned an automobile. The outstanding amount of the loan on the vehicle is greater than its current market value by about $3K.

I tried to negotiate a settlement with the lender but they will not accept less than full repayment of the loan.

I'm considering having the car repossessed. The attorney for the estate has advised me that claims against the estate can only be made during a 6 mo. period during which the estate is "open". That period has now expired passed.

Is the lender still able to make a claim against the estate?

If so, what is the likelihood they will prevail?

The downside is the estate would owe the remainder of the outstanding loan plus a myriad of fees the lender will no doubt tack on.

 

[JETX]

"I'm considering having the car repossessed. The attorney for the estate has advised me that claims against the estate can only be made during a 6 mo. period during which the estate is "open". That period has now expired passed.

Is the lender still able to make a claim against the estate?"
*** Yes, because the claim period doesn't start until the claim occurs.

"If so, what is the likelihood they will prevail?"
If they pursue it in court, very likely.

Are you the personal representative of the estate?? If so, it sounds like you may not have met all the requirements of noticing the creditors (this lender). Did you??

This is from a Maryland probate site:
"Before any beneficiary can inherit from the decedent, the decedent’s debts must be paid. As personal representative, this is one of your most important duties. You are under a duty to make a reasonably diligent effort to locate each creditor’s name and address. In addition, you must deliver or mail by first-class mail, postage prepaid, a copy of the Notice of Appointment to all of the decedent’s creditors whose names and addresses are known. Thereafter, you are under continuing duty to send a copy of the Notice of Appointment to any creditor found before the deadline expires for filing claims. This deadline is the earlier of six months after the decedent’s death (six months from the first appointment of a personal representative, if the decedent was a Maryland Medical Assistance Program recipient), or two months after you mail the actual Notice. Claims against the estate must be made within this time period.

Prior to the appointment of a personal representative, a claim is filed directly with the Register. (Be sure to review the claims docket at the Register of Wills Office upon your appointment.)

After the appointment of the personal representative, a claim is filed by (1) serving you as personal representative, (2) filing the claim with the Register and serving you as personal representative, or (3) filing suit. You must either pay the claim, or disallow the claim (in full or partially) on the prescribed form.

Upon the expiration of the six-month period from the date of death of the decedent for filing claims, the personal representative must pay all claims allowed against the estate. If there are insufficient assets to pay all claims, Maryland law provides a priority of payment of claims for an insolvent estate."
Source: http://www.registers.state.md.us/html/chapter5.htm

From the above, you are OBLIGATED to pay ALL claims of the estate. Are you saying that you noticed the creditor and they never filed a claim???