It is possible to deal with an insolvent estate informally if the debts are small. In many cases there is not enough money left even to pay for a funeral. There are two template letters below which you may find helpful to inform creditors if this is situation. This should be done as soon as reasonably possible after the death.
If the situation is at all more complex then you should certainly consider obtaining professional advice from a legal professional - see Useful Contacts. It may still be possible for a professional to deduct their fees from the assets available or you may consider the fees a worthwhile investment to protect you from hostile creditors. A professional can advise whether the estate should be referred to the court to be dealt with formally. Otherwise it is possible for a creditor or creditors acting together to apply to the court for the authority to administer an estate.
How to use letter templates
Simply download the file by clicking on the links below, and save the file on your desktop. Double click the file to open the document, and you can amend the letter with your details. Click 'File', then 'Save as' to save the letter for your records.
For a sample letter for creditors when there are no funds in the estate click here.
For a sample letter for creditors when there are insufficient funds to meet all debts please click here.