How are creditors of the estate (parties the deceased owed money to) dealt with during probate?
As part of the probate process, creditors are notified of the death. Creditors are expected to file a claim for whatever they are owed within a certain time frame – either with the Personal Representative or, if appropriate to the respective probate of laws of that state, or with the probate court itself. Creditors’ claims are either approved or rejected by the executor. If approved, what is owed is paid out of the estate. If the claim is rejected, creditors can sue the estate for what is owed. The Executor is forced to sell property to pay off approved creditor claims if there is not money in the estate.
Related Questions
- Can creditors of the Estate holding my Inheritance affect the outcome of my Probate Inheritance Advance or Inheritance Cash Advance?
- How are creditors of the estate (parties the deceased owed money to) dealt with during probate?
- How are Federal & State taxes owed by the deceased, by the estate, dealt with during probate?
