Mom died - no assets - just the house and no will in Michigan - Lots of Debt - Help!

Hello~

I am very sorry to hear of your loss. Obviously, these other issues are compounding the pain that you are dealing with.

Creditors can only collect against the estate. At this point, there IS no estate, so there is little they can do. The utility companies are within their rights in discontinuing service.

Whether or not you should open a probate estate depends on the value of the home. If there is a great deal of equity, then you will probably want to go through probate, because that is the only way you will be able to get legal title to the property in your name. Once an estate is open, you can negotiate with the creditors to see if they will be willing to work with you to get the debt paid off. If they are not willing to do so, then they will not be able to force you to sell the house. The best they would likely be able to do is to impose a lien on the property. Even that is doubtful, because they will have a hard time converting the unsecured creditor debt into a secured interest.

Many properties in Michigan are "upside down" in equity, at this time. If the house has little or no equity, then you may not want to undertake the probate process and the additional liabilities that will ensue.

You also have some practical problems, at the moment. You will want to keep the property insured, for example, but the insurance company will need to know about your mother's death and they may not want to insure the property if no one is living there. You will not be able to get insurance in your name unless and until you go through probate.

You may want to consult with an attorney to get more information regarding these matters.

James Frederick