When Can Creditors File A Claim Against An Estate?

After a person passes away, creditors can make claims against their estate to recover any debt the decedent owed them. This is done during the probate process. Before a creditor can make a claim, though, they must be notified of the death. There are important deadlines for any creditor that wants to file a claim against the estate and missing a deadline or a notice can leave the estate vulnerable. Below, our Daytona Beach probate lawyer explains when creditors can make a claim against an estate.

Notice to Creditors 

The personal representative is responsible for publishing a ‘Notice to Creditors’ in a local newspaper. This notifies creditors that they may have a potential claim against the estate. After the notice has been published, creditors have three months from the date of the original publication to file a claim against the estate.

In addition to publishing a notice, state law in Florida requires personal representatives to provide written, direct notice to any known creditors. These creditors can include mortgage companies, banks, medical providers, and credit cards. When creditors receive a direct notice, they have only 30 days from the date the notice was first served to file a claim against an estate.

When known creditors have not received direct notice, they have two years from the date of death to file a claim against the estate. When creditors do not make a claim against the estate before the deadline passes, they may be barred from recovering the debt.

As with most legal issues, there are exceptions to these deadlines, but neither personal representatives or creditors should assume they will apply.

Avoiding Issues with Creditors 

When certain rules and guidelines are not followed, it can leave the estate vulnerable to late claims. To ensure this does not happen, personal representatives should remember the following tips:

• Use due diligence to identify all known creditors. The deceased’s financial records can help you create a complete list.
• Serve timely, written notice to creditors along with a copy of the notice in the newspaper. Notice should be sent via personal service or certified mail to prove that notice was given. It is important to work with an attorney when serving notice to creditors.
• Keep detailed notes of any response from creditors who were directly notified. If a creditor misses the deadline, follow up with them.
• Do not make any statements to creditors that debts will be paid without first confirming that a claim was submitted before the deadline.

Our Probate Lawyer in Daytona Beach Can Help You Avoid Issues 

Managing creditor claims is just one aspect of administering estates. Our Daytona Beach probate lawyer at Bundza & Rodriguez can provide the guidance you need regarding the notice and claims to creditors, as well as every other aspect of the process. Our attorney has extensive experience helping personal representatives and families going through the probate process and will protect your rights while also minimizing issues with creditors. Call us today at 386-252-5170 or contact us online to request a consultation with our experienced attorney and to learn more about how we can help with your case.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.2121.html