how ARE CREDITORS AGAINST THE ESTATE HANDLED?
Q: How are creditors against the estate handled?
A: Creditors are notified of the death as part of the probate process. This notification process can vary from state-to-state and can range from a letter to each creditor to a blanket notice to all creditors published in the local newspaper.
Once this filing or notification has occurred, creditors have a fixed period of time (defined by the court of jurisdiction) to to file any claims against the estate either by notifying the personal representative or, in some states, notifying the probate court. If the claim is approved by the personal representative, the bill is usually paid out of the estate. However, if the personal representative rejects a claim is, the creditor must sue the estate for payment.
If the estate does not have sufficient funds to pay the lawful debts to the creditors, the determination of who receives payment and in what order is usually a matter of law. Also, the personal representative may be required to sell some or all of the decedent’s property to satisfy the claims of the creditors.
Have you inherited a property for which you are needing to sell, or at least get an appraisal? Learn the secrets to getting top dollar for your inherited property in the Houston area by ordering our free report to learn your options. Or contact us to set an appointment today. Our very own Caroline Allison, Harris County's and Fort Bend County’s top probate agent, will contact you to discuss your options.
A: Creditors are notified of the death as part of the probate process. This notification process can vary from state-to-state and can range from a letter to each creditor to a blanket notice to all creditors published in the local newspaper.
Once this filing or notification has occurred, creditors have a fixed period of time (defined by the court of jurisdiction) to to file any claims against the estate either by notifying the personal representative or, in some states, notifying the probate court. If the claim is approved by the personal representative, the bill is usually paid out of the estate. However, if the personal representative rejects a claim is, the creditor must sue the estate for payment.
If the estate does not have sufficient funds to pay the lawful debts to the creditors, the determination of who receives payment and in what order is usually a matter of law. Also, the personal representative may be required to sell some or all of the decedent’s property to satisfy the claims of the creditors.
Have you inherited a property for which you are needing to sell, or at least get an appraisal? Learn the secrets to getting top dollar for your inherited property in the Houston area by ordering our free report to learn your options. Or contact us to set an appointment today. Our very own Caroline Allison, Harris County's and Fort Bend County’s top probate agent, will contact you to discuss your options.
