The term insolvent refers to a situation in which a person's Debts exceed their Assets and they're unable to meet their financial obligations.

After a death, the term is used when a deceased person's Estate has more debt than assets and outstanding bills cannot be paid in full.

Determining an estate's insolvency is required during Probate, because the deceased's debts must be paid before assets can be distributed to Surviving Family members, Heirs, or Beneficiaries.

If an estate is insolvent, the Executor working to Settle the Estate may need to work with the Probate Court and Creditors to identify a plan to settle some debts and distribute remaining assets in a fair and equitable manner.

The probate court in the county and state where the deceased lived will first need declare the estate insolvent. Then, it will determine the priority of payments to creditors, including which debts must be paid before others.

An Estate Attorney or Probate Attorney is typically hired to help in these situations.