Unfortunately, it sometimes happens that an estate contains a number of assets, but that these are insufficient to cover the deceased’s debts.
In such a scenario, it may be appropriate to consider putting the estate into bankruptcy.
The collocation order set out insection 136 of the Bankruptcy and Insolvency Act gives priority to funeral expenses and expenses incurred by the executor, including notary fees. The petition to declare the estate bankrupt can be prepared and presented by the notary to the heirs.
Benefits of filing for bankruptcy in an estate
For the notary
Realizing assets in bankruptcy is fast and efficient.
For creditors
They will receive a dividend.
For the executor
He assures that the assets will be realized and incurs no personal liability.
If you are faced with a case where current and contingent liabilities exceed the realizable value of the assets, contact us to discuss whether and how to file for bankruptcy.
