Death of Debtor

The general rule is that equity will not enforce a demand by creditor’s bill until a judgment has been obtained and an execution issued there under and returned unsatisfied, or at least partially unsatisfied.  One of the exceptions to the general rule is death of the debtor.  An exception to the general rule is sometimes made when the legal remedies are obstructed by the death of the debtor and the laws relating to the administration of decedent’s estates.

Allowance of a claim against a decedent’s estate by a probate court is the equivalent of a judgment for the purpose of maintaining a creditor’s bill.  According to the Restatement, the creditors of a deceased beneficiary of a trust can reach his or her interest to the extent to which they could reach a corresponding legal interest, except insofar as a corresponding legal interest is exempt from creditors’ claims.

Inside Death of Debtor