Credit Card Claim Against Decedent's Trust

[Kelligreen]

My question involves collection proceedings in the State of: California. Father deceased in 2010. Had credit card debt with major bank. 8 months after death, the trust administrator received collection notice with balance from a law office. A law advisor said, "this guy sends out these notices by the dozens," and hinted at ignoring letter. So, I'm thinking that the collection lawyer bought the debt. Can't seem to get answers from bank about who owns the debt. . . getting the run around.
1) If collection lawyer bought the debt, can the trustees pay a lower amount?
2) can we dispute the debt (paying nothing at all)?
3) can trust(ees) be sued?
4) what's statute of limitation on creditors ability to collect debt?
5) what is our best course of action?

Thanks to all who respond. ASAP is best

[flyingron]

It depends upon the trust. If the trust was created as a revocable in vivos trust (commonly called a LIVING TRUST) the debts are recoverable as if the trust assets were just part of the estate.

1. You can try negotiating with the debtor, but if the trust has assets enough to pay in full all debts, he'd be a fool to accept less.
2. You can dispute the debt, but if the debt is valid it will do no good.
3. The trust will be sued and the trustees will be named in the suit, so yes.
4. Same as collecting debts in general. Typically four years, but depends on the nature of the debt.
5. Pay the legitimate debts.

[Kelligreen]

Thank you for your clear-cut, honest, straight forward answers.

[Mr. Knowitall]

Discussion continues here.