Resolving Debtor-Creditor Disputes in Probate Court

An essential role of the personal representative or trustee in the administration of the decedent's estate or trust is to review, assess, and resolve any claims of creditors against the estate, and to collect debts that were previously owed to the decedent. Disputes as to liability, specific amounts owed, availability of liability insurance, or counterclaims and other issues can all complicate the resolution of claims against or in favor of the estate. For experienced advice and representation with debtor-creditor disputes in the probate courts of Michigan, contact a commercial litigation attorney at Barron, Rosenberg, Mayoras & Mayoras, P.C. in Troy.

Our lawyers can represent estates in the determination and collection of debt disputes, creditors who need help recovering amounts owed by an estate, or third-party debtors in need of defense to the claims of an estate in probate court. Since the passage of Michigan's probate code in 2000, probate court jurisdiction to resolve contested debt claims is somewhat broader than it was previously. Most debtor-creditor disputes can be litigated in either probate court or circuit court, however, and our attorneys can advise you which forum might be more advantageous in your particular case.

We help probate court litigants resolve debtor-creditor disputes as well as other third-party litigation in such situations as the following:

• Breach of contract claims involving agreements to which the decedent was a party
• Tort claims either on behalf of or against the decedent
• Partnership or business disputes involving the decedent's management or ownership interest in a company
• Recovery of money owing to the decedent, or his or her trust, after his or her death

In certain situations involving the estate's alleged liability under a contract entered into by the decedent late in life, we can investigate the mental state and competency of the decedent at the time of the agreement in order to invalidate it. For the most part, however, the estate will succeed to the same rights and liabilities as the person held at the time of death.

Personal representatives owe a fiduciary duty to heirs and devisees to protect the estate by liquidating its claims for the greatest value practicable under the circumstances and by making sure that the claims paid reflect genuine obligations in correct or properly compromised amounts. If you need advice about third-party claims against or in favor of a Michigan probate estate, contact Barron, Rosenberg, Mayoras & Mayoras, P.C.