Why is the estate of the deceased debtors regarded as bankrupt in the eye of the law?
Which estate? This totally depends on the circumstances. Assuming that this the case, my guess is it that the estate of a deceased debtor is generally regarded as bankrupt in the eyes of the law because the estate is unable to pay off all of the debts of the deceased. When a person passes away, all of the assets they owned are collected, including any real estate, investments, and other physical items. These assets are then used to pay off the various creditors who were owed money by the deceased person.
However, in most cases, the assets of the deceased are not enough to cover all of the debts. This means that the creditors will not be able to receive the full amount that was owed. As a result, the estate of the deceased is considered bankrupt in the eyes of the law, since the creditors are not able to receive the full amount owed to them.
In addition to this, the estate of the deceased is also responsible for any taxes that were owed by the deceased. These taxes must be paid in full in order for the estate to be considered bankrupt. If the taxes are not paid, then the estate of the deceased will remain in debt and will not be considered bankrupt.
In some cases, the estate of the deceased may also be responsible for any outstanding loans or debts that were taken out by the deceased. These debts must also be paid in full in order for the estate to be considered bankrupt.
I hope you have found this helpful. If you ever need a lawyer to help you with due diligence. try this one:
Jeremy Eveland
17 North State Street
Lindon UT 84042
(801) 613-1472
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