How are estate creditors handled?

How are estate creditors handled?

Attorney Gadi Zohar explains:

Estate creditors are one of the most important parts of the probate process. They have a limited time period in which to make a creditors claim. An administrator or executor needs to notify all reasonably ascertainable creditors and known creditors. And then they have a limited time. You can approve a claim. You can reject a claim. You can approve a claim in part.

In rare instances, it could go to litigation. That’s very rare. Usually, creditors claims are settled out one way or another. But if it’s not handled correctly, you could unnecessarily pay creditors that shouldn’t have been paid or you could end up not paying creditors that should have been paid.

So it’s really worth having an experienced attorney assist you through the creditors process so that you know what the rights of the estate are with regards to creditors claim, which ultimately is the rights of the beneficiaries who are entitled to the estate.