When a Creditor Appears After Death

The executor thought every debt had been found.

The mortgage was recorded. The final electricity account had been paid. Credit cards were closed, tax information had been requested and enough money remained to cover funeral and administration expenses.

The house was sold, and the executor was preparing an interim distribution to the beneficiaries.

Then a letter arrived demanding $85,000.

The writer claimed the deceased had borrowed money privately four years earlier. A signed loan agreement was attached, but the executor had never heard of the arrangement. No liability appeared in the deceased’s latest accounts, and the beneficiaries insisted the signature looked suspicious.

One beneficiary wanted the demand ignored. Another argued that the executor should pay it immediately to avoid legal costs. The creditor threatened court proceedings unless the full amount was transferred within seven days.

The executor’s responsibility was not to choose the fastest answer.

A New Zealand executor must identify and pay valid estate debts before distributing the remaining property to beneficiaries. That duty does not require blind acceptance of every demand. It requires a fair investigation, proper evidence and careful application of creditor-priority rules.

A surprise creditor may hold a genuine claim. They may also be mistaken, unable to prove the amount, pursuing the wrong legal debtor or demanding payment for a liability that has already been discharged.

The executor must protect both sides: legitimate creditors should not be defeated by premature distributions, while beneficiaries should not lose estate money to unsupported demands.

## Debts Come Before Inheritances

An estate is not the amount shown in the will or the gross value of the deceased’s assets.

It is what remains after the executor has dealt with:

– Funeral expenses
– Administration costs
– Secured liabilities
– Tax
– Valid creditor claims
– Court orders
– Other enforceable estate obligations

Only the net estate is available for beneficiaries.

New Zealand estate guidance confirms that the executor or administrator must identify the deceased’s debts and pay them, together with applicable tax, before distributing the property. citeturn470646search14turn470646search16

A clause leaving $100,000 to a beneficiary does not give that person priority over the deceased’s creditors.

Likewise, a residuary beneficiary is entitled only to what remains after the estate’s lawful obligations have been met.

## What Counts as a Surprise Creditor?

A surprise creditor is not necessarily someone who appears after the estate is distributed.

The term can describe any claimant whose alleged debt was not evident during the executor’s initial investigation.

Examples include:

– A private lender
– A former business partner
– A supplier
– A landlord
– A tenant seeking compensation
– A former employee
– A family member claiming repayment
– A person who paid expenses for the deceased
– A guarantor seeking reimbursement
– A lender enforcing a personal guarantee
– A contractor with an unpaid invoice
– A government agency
– A foreign creditor
– A claimant under a court judgment
– A person alleging damage caused by the deceased

The claim may relate to money borrowed, services supplied, property damage, contractual obligations or another legally recognised liability.

The executor should distinguish a creditor claim from other estate claims, such as:

– A challenge to the will
– A Family Protection Act claim
– A testamentary promise claim
– A relationship-property election
– A claim that an asset belongs to someone else

All may reduce the estate, but they involve different legal tests and procedures.

## Do Not Pay or Reject the Claim Immediately

The first response should acknowledge the demand without admitting liability.

A practical reply might state:

> The estate acknowledges receipt of your claim. No admission is made regarding liability or the amount sought. Please provide the supporting documents and calculation listed below so the executor can assess the claim.

Ask the claimant for:

– Full legal name and contact details
– Legal basis of the debt
– Date the obligation arose
– Original signed agreement
– Complete account history
– Evidence of payments already made
– Interest calculation
– Security documents
– Correspondence with the deceased
– Invoices or delivery records
– Court orders
– Proof that the debt remains unpaid
– Explanation for any delay in making the demand

Do not tell the creditor that the estate will pay merely because the documents appear convincing at first glance.

Equally, do not dismiss a claim solely because the beneficiaries knew nothing about it.

Private debts are often private.

## Verify the Correct Debtor

A demand may be connected with the deceased without being a personal estate debt.

The actual debtor might be:

– A company
– A partnership
– A family trust
– A spouse or partner
– A jointly liable borrower
– A business customer
– Another family member

For example, the deceased may have signed a supplier order as a company director. That does not automatically make the invoice their personal liability.

The estate may be liable only if the deceased:

– Contracted personally
– Gave a personal guarantee
– Assumed joint liability
– Became liable through another enforceable arrangement

Check:

– Contracting party
– Signature block
– Company number
– Trust capacity
– Invoice name
– Bank account receiving the money
– Accounting records
– Tax treatment
– Security documents

The words “signed by the deceased” are not enough. Capacity matters.

## Check Whether the Debt Is Secured

A secured creditor may have rights against specific property.

Common security includes:

– A mortgage over land
– Security over a vehicle
– A charge over business assets
– A registered security interest
– A ship mortgage
– A lien
– Property held as collateral

For each alleged secured debt, identify:

– Borrower
– Security provider
– Secured property
– Outstanding amount
– Arrears
– Interest
– Enforcement rights
– Whether the security was released
– Whether the security covers other debts

A creditor claiming security should provide evidence.

Do not rely only on an invoice marked “secured.”

A secured creditor may be paid from, or enforce against, the secured asset before unsecured beneficiaries receive anything from it. The executor must understand the security before selling or transferring the property.

## Search the Deceased’s Records

The executor should compare the claim with the deceased’s records.

Search:

– Bank statements
– Accounting software
– Tax returns
– Email
– Loan documents
– Property records
– Company accounts
– Trust ledgers
– Payment references
– Diaries
– Written correspondence
– Previous legal files
– Financial statements
– Personal guarantees

Evidence supporting the creditor might include:

– A deposit matching the claimed loan
– Regular interest payments
– References to repayment
– A liability in financial statements
– Emails acknowledging the balance
– Security registration
– An unsigned draft matching the final agreement

Evidence against the claim might include:

– A payment marked final settlement
– A signed discharge
– Records showing the debt belonged to a company
– Evidence the funds were a gift
– Contradictory account balances
– A later agreement replacing the original debt

Preserve evidence on both sides.

The executor is investigating the estate’s liability, not building a case for whichever party they personally prefer.

## Verify the Signature and Document History

Where a private loan agreement appears unexpectedly, examine:

– Signature
– Witnessing
– Dates
– Page numbering
– Alterations
– Initials
– Document metadata
– Original versus copy
– Consistency with known signatures
– Whether independent advice was obtained
– Whether money was actually advanced

A signature can be genuine while the creditor’s interpretation remains wrong.

For example, the document may show:

– A loan already repaid
– A conditional obligation never triggered
– A company debt guaranteed only to a limit
– An agreement later varied
– Interest calculated incorrectly

If forgery, alteration or incapacity is genuinely suspected, obtain legal advice before accusing the claimant.

Expert document examination may be justified where the alleged liability is substantial.

## Family Loans Require the Same Evidence

A relative may say:

> I gave Mum $40,000 for the roof, and she always intended to repay me.

Family arrangements are frequently informal.

The transfer could have been:

– A loan
– A gift
– Shared household expenditure
– Payment for an ownership interest
– A contribution made without repayment terms
– A payment later forgiven

Ask for:

– Bank evidence
– Messages
– Written acknowledgements
– Repayments
– Interest terms
– Purpose
– Witnesses
– Accounting treatment
– Any discussion of forgiveness

Do not reject the claim merely because there was no formal loan contract.

An enforceable obligation can sometimes arise without a lengthy written agreement.

Do not accept it merely because the claimant is a close relative either.

The executor should apply the same verification standard to family and commercial creditors.

## Distinguish Reimbursement From Debt

Someone may have paid an expense on the deceased’s behalf.

Examples include:

– Medical costs
– Property repairs
– Rates
– Insurance
– Funeral deposits
– Care costs
– Business expenses

The claimant may seek reimbursement rather than repayment of a loan.

Verify:

– Invoice
– Proof of payment
– Who received the benefit
– Whether the payment was authorised
– Whether reimbursement was expected
– Whether the amount was reasonable
– Whether someone else was responsible

A family member who voluntarily paid for an expensive optional service may not automatically recover every dollar from the estate.

A person who paid an urgent insurance premium to preserve estate property may have a stronger reimbursement claim.

## Review Limitation Issues Carefully

The fact that a debt is old does not automatically mean it can be ignored.

Questions may include:

– When the legal cause of action arose
– When repayment became due
– Whether the debt was acknowledged later
– Whether partial payments restarted or affected time calculations
– Whether fraud, concealment or incapacity is alleged
– Whether a judgment already exists
– Which country’s law applies

Limitation law is technical and fact-specific.

The executor should not tell a creditor:

> The debt is more than six years old, so it is automatically invalid.

Nor should the executor revive or acknowledge a doubtful old debt casually.

A written statement such as “the estate accepts that the money is owed” can have legal consequences. Obtain advice before making admissions about a potentially time-barred claim.

## Request a Formal Proof of Claim

For significant or disputed debts, ask the creditor to provide a formal written claim supported by evidence.

It should identify:

– Creditor
– Estate
– Amount claimed
– Principal
– Interest
– Costs
– Legal basis
– Date due
– Security
– Supporting documents
– Payments credited
– Declaration that the claim remains owing

A structured claim helps the executor compare creditors consistently.

It also prevents the demand from changing without explanation.

If the creditor later increases the amount, ask for a revised calculation showing exactly why.

## Create a Creditor Register

Every known and potential creditor should appear in a central schedule.

| Creditor | Claimed Amount | Status | Security | Next Action |
|—|—:|—|—|—|
| Mortgage lender | $285,000 | Confirmed | Land mortgage | Pay on settlement |
| Private lender | $85,000 | Disputed | None claimed | Request original agreement |
| Tax authority | Unknown | Pending | Statutory liability | Final returns required |
| Contractor | $6,400 | Partly verified | None | Check completion records |
| Family member | $12,000 | Reimbursement claim | None | Review invoices |

Useful status labels include:

– Confirmed
– Partly accepted
– Disputed
– Contingent
– Secured
– Awaiting evidence
– Paid
– Withdrawn

Record deadlines, correspondence and settlement discussions.

This register helps the executor calculate reserves and avoid paying one creditor twice.

## Search for Unknown Creditors Before Distribution

A reasonable creditor search may involve:

– Reviewing mail
– Examining bank statements
– Searching email
– Checking tax records
– Contacting known advisers
– Reviewing property titles
– Checking business accounts
– Examining security registrations
– Looking at court records where appropriate
– Reviewing guarantees and leases
– Asking co-executors for known liabilities

The scope should match the estate.

A simple pensioner’s estate may require a different investigation from an estate involving several businesses, development properties and overseas contracts.

The executor is not required to imagine every possible creditor in the world.

They must take reasonable steps appropriate to the known circumstances.

## Should the Executor Advertise for Creditors?

Advertising for creditors can be a useful risk-management step, particularly where:

– Records are incomplete
– The deceased operated a business
– There may be private lenders
– The estate is substantial
– The deceased moved frequently
– Overseas obligations exist
– Family members mention unknown debts
– The executor intends to distribute significant funds

The form, placement and legal effect of any notice should be checked before publication.

A notice may invite creditors to submit claims by a specified date. It does not necessarily extinguish every late claim automatically.

The executor should obtain advice about:

– Appropriate publication
– Wording
– Response period
– Statutory protection
– Treatment of claims received afterward

Do not publish sensitive estate information beyond what is necessary.

## Do Not Confuse the Six-Month Rule With Creditor Extinction

New Zealand’s Administration Act provides conditional protection for certain distributions made after six months from the grant of administration where statutory requirements are satisfied.

That protection does not mean every unknown debt disappears on the six-month anniversary.

It also does not protect an executor who knowingly ignores a creditor, proceeding or effective notice.

The executor should distinguish:

– Protection from personal liability
– The estate’s continuing liability
– A creditor’s possible right to pursue recipients
– Limitation periods
– Notices received
– Court proceedings

Distribution safety depends on the exact facts, not merely the calendar.

## Priority Rules Matter When Money Is Limited

Where the estate is comfortably solvent, every verified creditor may be paid in full.

Where funds are insufficient, the executor cannot simply pay claims in the order they arrive.

The Administration Act provides that where an estate is insufficient to pay all debts, funeral expenses and testamentary expenses, the administrator may apply the estate according to the priorities that would apply under the deceased-estate insolvency regime. citeturn470646search0turn470646search9

The ranking can involve categories such as:

– Costs of administration
– Funeral expenses
– Secured claims against secured assets
– Preferential claims recognised by insolvency law
– Ordinary unsecured creditors
– Deferred or subordinated claims

The precise treatment depends on:

– Asset ownership
– Security
– Statutory priority
– Timing
– Nature of the debt
– Insolvency rules
– Court orders

Executors should obtain insolvency advice before paying creditors where full payment may be impossible.

A mistaken payment to a lower-ranking creditor can create personal exposure.

## Do Not Pay the Loudest Creditor First

A creditor may attempt to create urgency by:

– Calling repeatedly
– Threatening public action
– Contacting beneficiaries
– Setting a seven-day deadline
– Demanding personal payment from the executor
– Warning that interest is increasing

Urgency does not determine priority.

The executor should respond calmly:

> The estate is assessing all liabilities and cannot prefer one creditor improperly. Your claim will be considered with the other estate obligations once the supporting evidence and estate’s solvency position are established.

Do not allow pressure to produce an unlawful preference.

A polite supplier with a valid higher-ranking claim should not lose out because another creditor was more aggressive.

## Secured and Unsecured Creditors Are Different

A secured creditor may rely on identified property.

An unsecured creditor relies on the general estate.

For example:

– A mortgage lender may have rights against the mortgaged home.
– A private lender with no security may rank with ordinary unsecured creditors.
– A vehicle financier may have rights against the financed vehicle.
– A family member with a verbal loan may be unsecured even if the claim is valid.

The executor should not pay an unsecured claim from the sale proceeds of secured property without first accounting for the secured lender’s rights.

After the security is discharged, any remaining net equity becomes available to the estate.

## Contingent and Unquantified Claims

Some liabilities are real but not yet fixed.

Examples include:

– A personal guarantee not yet called
– Pending litigation
– A tax audit
– A building-defect claim
– An employee grievance
– A tenant compensation claim
– A business warranty
– A disputed insurance excess
– A foreign tax liability

The executor should not ignore a liability simply because no final invoice exists.

Create a reserve based on:

– Maximum exposure
– Probability
– Legal advice
– Evidence
– Expected resolution cost
– Insurance
– Rights of contribution or reimbursement

Review the reserve as the facts develop.

A $500,000 unlimited guarantee may justify a different reserve from a remote $5,000 contractual complaint.

## Interest and Collection Costs Must Be Checked

Creditors may add:

– Contractual interest
– Default interest
– Legal costs
– Collection fees
– Administration charges
– Penalties

Ask for the contractual or statutory basis of each addition.

Check:

– Rate
– Start date
– Compounding
– Payment credits
– Cap
– Enforcement costs
– Whether interest continues after death
– Whether penalties are lawful

Inland Revenue’s current death-notification guidance states that notification allows it to address tax owing and that no further penalties are added to tax owing after the death notification process applies. citeturn470646search8turn470646search24

Other creditors may operate under different terms.

Do not pay a round figure without a complete reconciliation.

## Deal With Tax as a Creditor Obligation

Tax must be investigated even when no demand has arrived.

The executor may need to address:

– Outstanding returns
– Final personal tax
– Estate income tax
– Rental income
– Business obligations
– Goods and services tax
– Student loan matters
– Overseas tax
– Property transactions
– Investment income

The absence of a tax letter does not prove that nothing is owed.

Notify the tax authority, obtain the deceased’s account position and retain an appropriate reserve until returns are complete.

An estate earning taxable income generally must file the relevant estate return. citeturn470646search32turn470646search33

## Joint Debts Need Careful Allocation

A creditor may pursue a surviving joint borrower, the estate or both, depending on the agreement.

Examples include:

– Joint mortgage
– Joint personal loan
– Joint credit account
– Business debt
– Guarantee
– Relationship debt

The executor should establish:

– Who signed
– Whether liability is joint, several or both
– Security
– Who received the benefit
– Surviving borrower’s payments
– Relationship-property implications
– Rights of contribution

The fact that a surviving partner continues paying does not automatically remove the estate’s liability.

Likewise, the estate should not assume full responsibility for a debt legally owed by another borrower.

## Dispute Only the Part That Is Disputed

A claim may be partly valid.

Suppose a contractor demands $28,000.

The executor confirms:

– $18,000 of completed work
– $4,000 of agreed materials
– $6,000 for work never performed

The executor might accept $22,000 while disputing $6,000.

Write clearly:

> The estate accepts liability for $22,000 based on the verified invoices and completed work. Liability for the remaining $6,000 is disputed because the supporting evidence does not show that the work was performed.

This narrows the dispute and can reduce legal costs.

Do not reject an entire claim merely because one line item is wrong.

## Negotiate Without Admitting More Than Necessary

Settlement may be sensible where:

– Evidence is incomplete on both sides
– Legal costs would exceed the disputed amount
– Interest continues
– A prompt compromise protects estate value
– Litigation risk is genuine

A settlement should record:

– Claim
– Amount accepted
– Payment date
– Interest and costs treatment
– Full and final release
– Security discharge
– Confidentiality where appropriate
– No further claim against the estate
– Authority to settle

The executor should document why settlement was preferable to litigation.

If the executor or a related beneficiary is also the creditor, use independent review and disclose the conflict.

## When to Involve a Lawyer

Legal advice is appropriate where:

– The claim is substantial
– Evidence is contradictory
– Fraud or forgery is alleged
– Limitation is an issue
– Security is disputed
– The estate may be insolvent
– A creditor threatens proceedings
– A personal guarantee is involved
– A foreign creditor appears
– The creditor is the executor
– Beneficiaries oppose payment
– Settlement requires releases
– Court documents have been served

A lawyer may assist by:

– Assessing liability
– Requesting evidence
– Advising on priority
– Negotiating
– Reviewing limitation
– Responding to proceedings
– Seeking court directions
– Advising on insolvent-estate administration

The cost of advice should remain proportionate, but early advice can prevent a much larger payment error.

## When Court Proceedings May Be Necessary

A disputed creditor may sue the estate through the personal representative.

The executor may also need court guidance where:

– Liability cannot be determined safely
– Several creditors dispute priority
– Security enforcement is contested
– The estate is insolvent
– Beneficiaries oppose a reasonable settlement
– The executor has a conflict
– Distribution cannot proceed

The Ministry of Justice confirms that ordinary civil proceedings for recovering money or settling disputes can be commenced in the High Court through a statement of claim, subject to the applicable jurisdiction and procedure. citeturn470646search2

Once proceedings arrive:

– Note every deadline
– Preserve the envelope and documents
– Notify co-executors
– Stop affected distributions
– Inform the estate’s lawyer
– Secure relevant records
– Avoid informal admissions
– Maintain a separate litigation-cost ledger

Do not ignore proceedings because the claimant previously appeared unreasonable.

## Insolvent Estates Need a Different Strategy

An estate is insolvent where its available assets are insufficient to meet its debts, funeral expenses and administration obligations in full.

Warning signs include:

– Mortgages exceeding property equity
– Large tax debt
– Business guarantees
– Several unsecured claims
– Little cash
– Declining asset values
– Litigation
– Funeral and administration costs consuming the remaining fund

Once insolvency is possible:

– Stop beneficiary distributions.
– Avoid paying ordinary unsecured creditors selectively.
– Obtain reliable asset values.
– Confirm security interests.
– Prepare a complete creditor register.
– Obtain insolvency advice.
– Preserve estate property.
– Communicate carefully with creditors.

The beneficiaries may receive nothing.

That outcome is not an executor failure if the estate genuinely lacks net value.

Paying beneficiaries while creditors remain unpaid can create personal risk.

## Executors Are Not Automatically Personally Liable

The deceased’s debts do not ordinarily become the executor’s personal debts merely because they accepted the role.

Personal exposure may arise if the executor:

– Distributes too early
– Ignores a known creditor
– Pays creditors in the wrong order
– Wastes estate assets
– Continues a business recklessly
– Admits liability improperly
– Mixes estate and personal funds
– Prefers themselves or a related creditor
– Fails to retain an appropriate reserve

The safest protection is disciplined administration rather than personal payment.

Do not sign creditor arrangements in your own name without clearly stating your representative capacity.

## What if a Creditor Appears After Distribution?

The result depends on:

– When the claim arose
– When it was notified
– Searches and notices completed
– Statutory protection
– Whether the executor knew of the liability
– Whether the creditor can pursue beneficiaries
– Whether the estate was fully distributed
– Limitation
– Fraud or concealment
– Wording of receipts and indemnities

The executor should not assume:

> The money is gone, so the claim no longer matters.

Contact a lawyer before responding.

Possible outcomes may include:

– Claim rejected
– Beneficiaries asked to repay
– Creditor pursuing recipients
– Executor personally exposed
– Settlement
– Court proceedings
– Reopening estate accounts

This is why final distribution should follow a documented creditor search and reserve analysis.

## Beneficiary Indemnities Have Limits

An executor may ask beneficiaries to sign an indemnity promising to return money if a later liability appears.

An indemnity may be useful but is not a substitute for prudent investigation.

A beneficiary might:

– Spend the inheritance
– Become insolvent
– Move overseas
– Refuse repayment
– Die
– Dispute the document

The executor should not knowingly distribute against a credible claim simply because beneficiaries have signed indemnities.

Use indemnities as one layer of protection, not the entire creditor strategy.

## Communicate Delays Without Disclosing Too Much

Beneficiaries should know when a surprise claim affects distribution.

A suitable update might state:

> The estate has received a previously unknown creditor claim for a material amount. The executor is verifying the agreement, payment history and legal liability. Sufficient funds must remain in the estate while that process occurs, so the proposed distribution has been postponed. No decision has yet been made on whether the claim will be accepted.

Avoid circulating:

– Private financial details unrelated to the estate
– Unverified allegations
– Privileged advice
– Complete identity records
– Settlement offers marked confidential

Tell beneficiaries enough to explain the delay without turning them into an informal jury.

## The Executor’s Surprise-Creditor Checklist

### When a demand arrives

– Record the date received.
– Acknowledge without admitting liability.
– Pause any distribution that could prejudice the claim.
– Request full supporting evidence.
– Add the claim to the creditor register.

### Verify

– Confirm the correct debtor.
– Review contracts and payment records.
– Check security.
– Separate principal, interest and costs.
– Investigate limitation and prior settlement.
– Compare the claim with tax, company and trust records.

### Assess the estate

– Update asset values.
– Confirm all known liabilities.
– Determine whether the estate remains solvent.
– Calculate a conservative reserve.
– Review creditor priority.

### Resolve

– Accept the supported amount.
– Dispute unsupported portions clearly.
– Negotiate where proportionate.
– Obtain releases and security discharges.
– Seek legal advice or court directions where necessary.

### Before distribution

– Complete reasonable creditor searches.
– Review all notices and proceedings.
– Finalise tax as far as possible.
– Retain appropriate contingencies.
– Record the reasons distribution is safe.
– Obtain receipts and any appropriate indemnities.

The most dangerous surprise creditor is not always the one with the largest demand.

It is the one the executor reacts to emotionally, paying too quickly because of pressure or rejecting too quickly because the claim disrupts the beneficiaries’ expectations.

A careful executor slows the process down just enough to answer the questions that matter: Did the deceased owe this money? How much remains owing? What evidence proves it? Where does the claim rank? Can the estate pay everyone properly?

Only after those questions are answered can the executor know whether the demand is an estate debt, a disputed allegation or a problem that must be placed before a court.

## Frequently Asked Questions

### 1. Must an executor pay every debt claimed against the estate?

No. The executor must pay valid debts but can require evidence and dispute claims that are unsupported, incorrectly calculated, legally unenforceable or owed by another person or entity.

### 2. What evidence should a creditor provide?

Useful evidence includes the original agreement, invoices, bank records, account statements, payment history, interest calculation, security documents, correspondence and proof that the balance remains unpaid.

### 3. Can beneficiaries be paid while a creditor claim is disputed?

Possibly, but only if the executor can retain enough money for the claim, tax, costs and other liabilities. A material disputed demand commonly makes full distribution unsafe.

### 4. Are family members treated differently from commercial creditors?

No. A genuine family loan or reimbursement claim should be assessed fairly, but relationship alone does not prove or disprove the debt.

### 5. What happens if the estate cannot pay every creditor?

The estate may be insolvent. The executor must follow the applicable statutory priorities rather than paying claims in the order received or favouring particular creditors.

### 6. Is an executor personally responsible for the deceased’s debts?

Not automatically. Personal exposure can arise if the executor distributes prematurely, ignores known debts, misapplies assets or pays creditors contrary to the proper priority rules.

### 7. What if a creditor appears after the estate has been distributed?

The executor should obtain legal advice immediately. Liability can depend on notice, searches, statutory protection, the executor’s knowledge, limitation rules and whether recovery can be sought from beneficiaries.

### 8. When should a lawyer review a creditor claim?

Legal review is sensible where the claim is substantial, disputed, old, secured, connected with a guarantee, potentially fraudulent, subject to foreign law or capable of making the estate insolvent.