In Virginia, all debts of the decedent must be paid prior to the distribution of assets to any beneficiary or heir at law. If the estate is insolvent, meaning the debts exceed the assets, creditor claims are paid based on the class of creditors and the assets remaining after administration costs. In both cases, a debts and demand hearing may be held before the Commissioner of Accounts to determine the validity of the creditor claims, the class of the creditors, and the order of payment.
Regardless of the solvency of the estate, negotiations with creditors may be feasible to reduce the amount due. The Probate Law Firm can assist you with determining the debts of the estate, negotiating the creditor claims, and representing you before the Commissioner of Accounts at a debts and demands hearing, and ensuring payment of all claims in compliance with the statutory framework.