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=U4= Sec1975 -- Section 1975 Administration of estate ; estate insolvency
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=S=> BGB 1975 The liability of the heir for the obligations of the estate is restricted to the estate if curatorship is ordered in order to satisfy the creditors of the estate ( administration of the estate ) or estate insolvency proceedings are instituted .
=U4= Sec1976 -- Section 1976 Effect on legal relationships extinguished by merger
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=S=> BGB 1976 If administration of the estate has been ordered or estate insolvency proceedings have been instituted , the legal relationships extinguished on the devolution of the inheritance by merger of right and obligation or of right and encumbrance are deemed not to be extinguished .
=U4= Sec1977 -- Section 1977 Effect on a set-off
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=S=> BGB 1977. 1 If a creditor of the estate , before administration of the estate was ordered or before estate insolvency proceedings were instituted , set off without the approval of the heir his claim against a claim of the heir that does not form part of the estate , then after the administration of the estate is ordered or estate insolvency proceedings are instituted , the set-off is to be deemed not to have taken place .
=S=> BGB 1977. 2 The same applies if a creditor who is not a creditor of the estate has set off his claim on the heir against a claim belonging to the estate .
=U4= Sec1978 -- Section 1978 Responsibility of the heir for previous administration , reimbursement of expenses
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=S=> BGB 1978. 1 If administration of the estate has been ordered or estate insolvency proceedings have been instituted , the heir is as responsible to the creditors of the estate for the previous management of the estate as if he had had to manage the estate for them as their agent from the date of acceptance of the inheritance on . The transactions relating to the inheritance carried out by the heir before the acceptance of the inheritance are governed by the provisions on agency without specific authorisation , with the necessary modifications .
=S=> BGB 1978. 2 The claims of the creditors of the estate under subsection ( 1 ) are deemed to belong to the estate .
=S=> BGB 1978. 3 Expenses are to be reimbursed to the heir from the estate to the extent that he could require reimbursement under the provisions on mandate or on agency without specific authorisation .
=U4= Sec1979 -- Section 1979 Discharge of obligations of the estate
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=S=> BGB 1979 The discharge of an obligation of the estate by the heir must be treated by the creditors of the estate as having been made for the account of the estate if the heir in the circumstances was entitled to assume that the estate was sufficient to discharge all obligations of the estate .
=U4= Sec1980 -- Section 1980 Application for institution of estate insolvency proceedings
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=S=> BGB 1980. 1 If the heir has obtained knowledge of the insolvency or overindebtedness of the estate , he must without undue delay apply for the institution of estate insolvency proceedings . If he infringes this duty , he is liable to the creditors for the damage resulting from this . In assessing the adequacy of the estate , the liabilities in the form of legacies and testamentary burdens are not taken into account .
=S=> BGB 1980. 2 Ignorance arising from negligence is equivalent to knowledge of insolvency or overindebtedness . It is deemed in particular to be negligence if the heir does not apply for public notice for the creditors of the estate although he has reason to assume that there are unknown obligations of the estate ; public notice is not necessary if the costs of the proceedings are disproportionately high in relation to the amount of the estate .
=U4= Sec1981 -- Section 1981 Order of administration of the estate
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=S=> BGB 1981. 1 The administration of the estate must be ordered by the probate court if the heir applies for the order .
=S=> BGB 1981. 2 The administration of the estate must be ordered on the application of a creditor of the estate if there is reason to assume that the satisfaction of the creditors of the estate from the estate is endangered by the conduct or the financial situation of the heir . The application may no longer be made if two years have passed since the acceptance of the inheritance .
=S=> BGB 1981. 3 The provision of section 1785 does not apply .
=U4= Sec1982 -- Section 1982 Refusal to order administration of the estate for insufficiency of assets
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=S=> BGB 1982 There may be a refusal to order administration of the estate if the assets are insufficient to pay the costs .
=U4= Sec1983 -- Section 1983 Public notice
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=S=> BGB 1983 The probate court must publish the order of administration of the estate in the newspaper chosen for its notices .
=U4= Sec1984 -- Section 1984 Effect of the order
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=S=> BGB 1984. 1 On the order of administration of the estate , the heir loses the authority to manage the estate and dispose of it . The provisions of sections 81 and 82 of the Insolvency Code [ Insolvenzordnung ] apply with the necessary modifications . A claim directed against the estate may be asserted only against the administrator of the estate .
=S=> BGB 1984. 2 Execution of judgment against the estate and attachment of the estate in favour of a creditor who is not a creditor of the estate are excluded .
=U4= Sec1985 -- Section 1985 Duties and liability of the administrator of the estate
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=S=> BGB 1985. 1 The administrator must manage the estate and discharge the obligations of the estate from the estate .
=S=> BGB 1985. 2 The administrator is also responsible to the creditors of the estate for the management of the estate . The provisions of section 1978 ( 2 ) and sections 1979 and 1980 apply with the necessary modifications .
=U4= Sec1986 -- Section 1986 Delivery of the estate
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=S=> BGB 1986. 1 The administrator may pay out the estate to the heir only when the known obligations of the estate have been discharged .
=S=> BGB 1986. 2 Where the discharge of a liability is not possible at the time , or where a liability is disputed , the estate may be paid out only if security is provided to the creditor . The provision of security is not necessary for a conditional claim if the possibility of the condition being fulfilled is so remote that the claim does not have a current asset value .
=U4= Sec1987 -- Section 1987 Payment of the administrator of the estate
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=S=> BGB 1987 The administrator may request appropriate payment for carrying out his office .
=U4= Sec1988 -- Section 1988 End and cancellation of administration of the estate
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=S=> BGB 1988. 1 The administration of the estate ends on the institution of the estate insolvency proceedings .
=S=> BGB 1988. 2 The administration of the estate may be cancelled if it is shown that the assets are insufficient to pay the costs .
=U4= Sec1989 -- Section 1989 Defence by the heir of exhaustion of assets
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=S=> BGB 1989 If the estate insolvency proceedings are ended by distribution of the assets or by an insolvency plan , the liability of the heir is governed by the provision of section 1973 with the necessary modifications .
=U4= Sec1990 -- Section 1990 Defence by the heir of insufficiency of assets
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=S=> BGB 1990. 2 The right of the heir is not excluded by the fact that the creditor , after the date of the devolution of the inheritance , by way of execution of judgment or enforcement of seizure or arrest , has obtained a pledge or a mortgage or , by way of interim injunction , a priority notice .
=U4= Sec1991 -- Section 1991 Consequences of defence of insufficiency of assets
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=S=> BGB 1991. 1 If the heir exercises the right to which he is entitled under section 1990 , his responsibility and the reimbursement of his expenses are governed by sections 1978 and 1979.
=S=> BGB 1991. 2 The legal relationships extinguished as a result of the devolution of the inheritance by merger of right and obligation or of right and encumbrance are deemed in the relationship between the creditor and the heir not to be extinguished .
=S=> BGB 1991. 3 The final and absolute judgment ordering the heir to satisfy a creditor has the same effect with regard to another creditor as satisfaction .
=S=> BGB 1991. 4 The liabilities arising from rights to a compulsory share , legacies and testamentary burdens must be discharged by the heir in the same way as they would be satisfied in the case of insolvency proceedings .
=U4= Sec1992 -- Section 1992 Overindebtedness as a result of legacies and testamentary burdens
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=S=> BGB 1992 If the overindebtedness of the estate results from legacies and testamentary burdens , the heir , even if the conditions of section 1990 are not satisfied , is entitled to effect the discharge of these liabilities under the provisions of sections 1990 and 1991. He may prevent the return of the objects of the estate still in existence by paying the value .
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