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Frequently asked questions > Succession/Estate > Insolvent estates, renunciation and declaration of heirs > What should the liquidator do when a new debt is discovered before the end of the liquidation?

What should the liquidator do when a new debt is discovered before the end of the liquidation?

Yes. In a deficit estate, some creditors may be paid in full while others are only partially paid or receive no payment.

This difference may in particular result from the nature of the debt and its ranking.

When the estate's assets are insufficient, the liquidator first pays the priority or mortgage creditors, according to their ranking. A creditor with a ranking that allows them to be paid before others can therefore receive their entire claim even if there are subsequently insufficient assets to fully pay the other creditors.

The other creditors are then paid according to the applicable rules. When available assets are insufficient to fully repay them, they are paid in proportion to their claims.

The liquidator cannot therefore freely decide to pay one creditor in full rather than another. Payments must respect the nature and priority of the debts and, in the case of an insolvent estate, the payment proposal approved by the court.

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