How Are Estate Creditors Handled?

As part of the probate process, creditors are notified of the death. They must file a claim for the amounts due. If the claim is approved by the personal representative, the bill is paid out of the estate. If the claim is rejected, creditors must sue for payment.

If there are insufficient funds to pay all debts, state statutes specify the priority for payment.  If there is insufficient cash subject to probate, the personal representative will have to sell property to pay off approved creditor claims according to the statutory priorities.

If you or someone you know needs legal representation, contact Kryger Alexander Carlson PC at (541) 928-6171 (Albany Office) to set up an appointment to speak with one of our attorneys, or submit a free case review form.