old debt in estate closing

[greatfulrob]

What is the name of your state? ny
We are settling my mother's estate and are trying to figure out how far back in her credit card debt we have to pay. The debt was unsecured and was accrued around 1996. There may be a judgement brought against her in one case. She was disabled and living on Social Security. My understanding was that after 6 years the debt was considered uncollectable. Please give my some advice, these bills may cause the loss of the family home. Thank you.

 

[Ladynred]

I take it the estate is/has been probated ?

First of all, to find out if there is a judgment, call the court where it would have been rendered and ask the court clerk if there are any judgments against your mother. If there are no judgments, then the SOL on a credit card in NY is 6 years, beginning with the first delinquency that preceeded charge-off. If the debt is beyond the SOL, forget it, they can't make anyone pay it.

If you're going thru probate, then creditors have a set amount of time in which to make a claim on the estate to get paid for those debts. If they make no claim in that time, they're up the creek.

 

[greatfulrob]

The lawyer wants to contact the creditors and settle the debts. Would we be better off doing this or just seeing who shows up ? thanks !

 

[Ladynred]

Well, that's S.O.P. but there really is no need to pay off a debt that is past the SOL, they can do nothing legally to you or anyone else on a time-barred debt.

Personally, I'd wait to see who makes a claim, you may end up paying out a lot less than you would by just outright paying them all. Then he can settle with whoever does make a claim.