Chapter 34 - § 34.42 • INSOLVENT ESTATES

• Jurisdiction: Colorado

§ 34.42 • INSOLVENT ESTATES

The Code seems to have no specific provision directed particularly to insolvent estates, as did former law, but the section relating to classification of claims provides that within each classification there shall be no preference of one claim over another in the same class, which automatically requires payment of claims in their order of preference, with proration among the last class not paid in full.¹²³ To ensure protection against an improper distribution among the creditors, the representative should petition the court in a formal proceeding to review the claims and available assets and then to order the distribution. All interested persons, including all of the creditors, should be given notice. If the petition contains the personal representative's proposal for the application of priorities and for distribution of the available assets, failure of any of the creditors to approve would provide a basis for the court to...